With the United States poised to announce a new round of reciprocal global tariffs on April 2, the White House has confirmed that some sectors may be exempt from the initial rollout, leaving room for negotiation and potential relief for key trading partners such as Canada and Mexico.
White House official suggested that decisions around sector-specific tariffs are still under review and may not be finalized by the April 2 deadline.
“POTUS has talked a lot about sectoral tariffs,” the official stated. “But we may have sectoral tariffs on April 2 and we may not. No final decisions have been made yet.”
The news follows initial reports by Bloomberg News and The Wall Street Journal indicating that the administration may target tariffs by sector, rather than imposing blanket measures. These developments come as tensions around North American trade intensify, particularly regarding the Canada-U.S.-Mexico Agreement (CUSMA).
U.S. Treasury Secretary Scott Bessent confirmed on Fox News last week that the administration is preparing to release country-specific tariff rates, arguing the new approach is meant to reflect existing trade imbalances.
“What’s going to happen on April 2, each country will receive a number that we believe represents their tariffs,” said Bessent. “For some countries, it could be quite low, for some countries it could be quite high.”
The move comes as the current exemption on U.S. auto import tariffs from Canada and Mexico is set to expire on the same day. The White House had previously delayed the imposition of 25 per cent tariffs on autos from CUSMA-aligned countries, but no new extension has been confirmed.
Currently, the United States maintains a 25 per cent tariff on Canadian steel and aluminum, which prompted Canada to respond with nearly $30 billion in retaliatory tariffs on American goods, including steel, aluminum, and consumer products like wine, orange juice, and spirits.
Canada has stated that its retaliatory tariffs will remain in effect until all U.S. tariffs on Canadian imports are fully lifted.
As businesses and international markets brace for the potential fallout, further details on which sectors will be affected — or spared — by the upcoming tariffs are expected in the coming days.