Canada Among Few Spared in Sweeping Trade Announcement
In a move that sent shockwaves through global markets, U.S. President Donald Trump announced a 90-day pause on certain tariffs while dramatically increasing levies on Chinese imports to 125%, effective immediately.
The White House also confirmed Canada will be exempt from the new 10% baseline reciprocal tariffs being imposed on dozens of other countries.
President Trump made the announcement via social media on Wednesday, declaring:
“I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
While details remain unclear on how the new tariffs will be implemented, the markets responded positively to the temporary pause — a sharp contrast to the volatility seen in recent days.
Prime Minister Mark Carney responded to the news, calling the pause a “welcome reprieve for the global economy.”
“As President Trump and I have agreed, the U.S. and Canada will begin negotiations on a new economic and security relationship immediately following the Federal election,” Carney posted on X (formerly Twitter).
He added that the U.S. willingness to engage in bilateral talks could lead to a major restructuring of the global trading system. Meanwhile, Canada will continue to strengthen ties with other trade partners.
When pressed by reporters about when he decided on the 90-day tariff pause, Trump gave a vague response.
“For a period of time. I would say this morning. Over the last few days, I’ve been thinking about it… Fairly early this morning,” he said.
Earlier in the day, the president had taken to social media, urging the public to “BE COOL” and calling it “A GREAT TIME TO BUY!!!”
Confusion also emerged within the Trump administration, with mixed signals on whether the tariff hikes were part of a broader negotiation tactic. Trump later clarified, “A lot of times it’s not a negotiation until it is.”
In an email to CTV News, the White House confirmed that Canada is exempt from the 10% reciprocal tariffs but noted that other U.S. tariffs still remain in place:
- 25% tariffs on foreign-made automobiles: Canadian vehicles are exempt for now, pending the development of a mechanism to tax only non-American parts in CUSMA-compliant products.
- Steel and aluminum tariffs: Still in effect since March 12.
- Border-related tariffs: 25% on all Canadian imports and 10% on Canadian energy still apply to goods not compliant with the Canada-U.S.-Mexico Agreement (CUSMA).
Commerce Secretary Howard Lutnick explained that the European Union was spared additional tariffs because the EU’s recently announced measures have not yet taken effect.
“I’m glad that they held back,” Trump said, suggesting that immediate retaliation would have prompted further escalation.