Temporary Relief Falls Short as U.S. Duties Still Loom Large
U.S. President Donald Trump has hit the pause button on some of his punishing tariffs targeting Canadian goods, but the reprieve offers only a sliver of comfort to a northern neighbor still reeling from trade threats. On Thursday, Trump inked an executive order delaying duties on products meeting the Canada-U.S.-Mexico Agreement’s (CUSMA) rules of origin and slashing levies on potash to 10%—a freeze set to last until April 2.
The move comes after Trump made good on his Tuesday promise to slap a hefty 25% tariff on all Canadian and Mexican imports, alongside a 10% hit on Canadian energy exports, sending markets into a tailspin. Ottawa, in turn, shelved its plans for a second round of counter-tariffs, opting for a wait-and-see approach.
Foreign Affairs Minister Mélanie Joly, speaking to CNN on Thursday, stressed the need for stability. “Businesses on both sides of the border are desperate for clarity,” she said, vowing Canada would keep pushing to kill the tariff menace once and for all.
The rollercoaster week kicked off Wednesday, March 6, with tensions simmering as Trump’s initial salvo rattled cross-border trade. For now, Canada’s caught between a temporary truce and an uncertain future.