Canada delays second wave of retaliatory tariffs

Federal government has postponed its second wave of retaliatory tariffs against United States imports by one week, responding to President Donald Trump’s decision to delay tariffs on most Canadian and Mexican goods. 

Finance Minister Dominic LeBlanc announced the move on Thursday, stressing Canada’s push to end all tariffs while keeping initial countermeasures in place.  

“Canada will not proceed with the second wave of tariffs on $125 billion of US products until April 2, while we continue to work for the removal of all tariffs,” LeBlanc said in a social media post. 

The first round of tariffs by the federal government remains active and includes a 25% duty on $30 billion in US steel, aluminum, and other goods.

Trump signed an executive order on Thursday waiving a 25% tariff on most Canadian and Mexican imports covered under the Canada-US-Mexico Agreement (CUSMA), which covers 95% of cross-border trade. 

Trump called the decision a “short-term modification” but continued saying that the US does not need Canadian goods, including lumber, vehicles, or energy.  

“We can be self-sustaining. We don’t need anything from Canada,” Trump told reporters in the Oval Office. 

However, tariffs on steel and aluminum are still set to start on March 12, with broader global tariffs expected on April 2.  

Prime Minister Justin Trudeau said Canada remains in a “trade war launched by the United States” and will maintain retaliatory measures until all US tariffs are lifted. 

“We will respond strongly as long as these unjustified tariffs exist,” said Trudeau.  

Ontario Premier Doug Ford confirmed the province will proceed with its own countermeasures despite the federal delay, including a 25% surcharge on electricity sold to 1.5 million US customers and a ban on American alcohol in provincial stores.  

The developments follow Trump’s 30 day tariff exemption for automakers Ford, General Motors, and Stellantis, announced on Wednesday. 

White House Press Secretary Karoline Leavitt said the move is meant to pressure companies to shift production to the US, despite a deeply integrated North American supply chain.  

Federal Innovation Minister François-Philippe Champagne said he spoke to the automakers CEOs on Thursday, urging them to keep operations in Canada. 

The delayed tariffs underscore ongoing friction between the two countries, with Canada insisting its response will match US actions. 

“The pressure stays on,” said Trudeau.