Trump Delays Canadian Tariffs Amid Ongoing Trade Talks
US President Donald Trump temporarily paused his plan to impose 50% tariffs on certain Canadian goods, citing a deal between the two countries. The reprieve lasts for three days and was announced by Trump on his Truth Social platform.
The tariffs were set to take effect past midnight on Tuesday but will now be delayed until Friday. They target products such as wine, hockey sticks, and cement, affecting around 5.5% of Canada's exports to the US, worth approximately $20 billion, according to Oxford Economics.
Trump signed orders for the tariffs last month, claiming 'discriminatory treatment' by Canada against US alcohol, automobile, and dairy products. However, Canadian Prime Minister Mark Carney has been working to negotiate a deal with Trump's administration.
The delay is seen as a result of these negotiations, which have been described as 'intense and delicate.' The US-Mexico-Canada free trade agreement (USMCA) renewal talks are also ongoing. Oxford Economics estimates that the tariffs would pose only a 'modest' negative risk to Canada's economy but affect central Canada's manufacturing sector more severely.
Canadian negotiators have offered concessions, including pressuring provinces to put US alcohol and wine back on their shelves. Former US commerce official Christopher Padilla expects Trump to use new tariffs as leverage in trade negotiations.