Trump Delays Canada and Mexico Tariffs: Trade War Pauses Amid Market Chaos
U.S. President Donald Trump has put a temporary hold on some tariffs targeting Canada and Mexico, offering a brief sigh of relief to businesses and consumers. The decision comes after stock markets took a hit earlier this week when Trump’s initial 25% tariffs kicked in on Tuesday. Economists had warned that these blanket levies could slow U.S. growth and spike inflation, though Trump dismissed claims that his tariff rollback was tied to the market turmoil.
The tariff pause, announced Thursday, delays duties on Canadian and Mexican goods under the United States-Mexico-Canada Agreement (USMCA) until April 2. For Canada, this means a break for industries like automakers, where parts crisscross borders during production. However, 62% of Canadian imports—mostly energy products—still face a 10% tariff. Trump called the move a win for American car giants like Ford, General Motors, and Stellantis after talks with the “Big Three.”
In Ottawa, Canadian Finance Minister Dominic LeBlanc welcomed the delay, suspending a planned $125 billion wave of retaliatory tariffs on U.S. goods like beef, pork, and electric vehicles. Yet, Canada’s first round of C$30 billion in tariffs remains in place, signaling ongoing trade tensions. Prime Minister Justin Trudeau stressed that Canada will keep fighting until all tariffs are lifted, warning of a prolonged trade war with the U.S.
South of the border, Ontario Premier Doug Ford fired back, hiking electricity prices by 25% for 1.5 million Americans in states like Michigan and New York. Ford vowed to stay “relentless” until Trump drops his tariff threats for good.
Meanwhile, Trump also paused tariffs on Mexico after a “respectful” call with President Claudia Sheinbaum. He cited progress on immigration and drug trafficking as reasons for the four-week reprieve. Sheinbaum praised the decision, pledging continued cooperation.
Despite the temporary relief, Trump warned that “reciprocal” tariffs could return on April 2, and steel and aluminum duties are still set to hit next week. U.S. markets slumped again Thursday, reflecting the uncertainty. For now, the tariff rollercoaster continues, leaving North American trade in limbo.
