Canada to hold off most tariffs on US after Trump pauses levies

A sign marking the international border between the United States and Canada is pictured at Peace Arch Historical State Park in Blaine, Washington. The United States will allow a one-month exemption from tariffs on auto imports from Canada and Mexico, the White House said on March 5, a day after steep levies on its neighbors came into effect. (Photo by Jason Redmond / AFP)

Ottawa, Canada – Canada will hold off imposing counter-tariffs on $125 billion in US goods, Finance Minister Dominic LeBlanc said Thursday, after US President Donald Trump agreed to suspend levies on Canadian exports covered by a North American trade agreement.

“Canada will not proceed with the second wave of tariffs on $125B of US products until April 2nd, while we continue to work for the removal of all tariffs,” LeBlanc, who is leading Canada’s trade negotiations with its neighbor, posted on X.

READ: China, Canada retaliate to Trump tariff war

A first phase of Canadian retaliatory tariffs on $30 billion worth of US goods went into effect Tuesday after Trump slapped 25 percent levies on most Canadian imports into the United States.

These will remain in effect, a Canadian government source told AFP.

Earlier Thursday, Trump signed orders to delay levies for imports covered by the United States-Mexico-Canada Agreement (USMCA), providing some reprieve to companies and consumers after blowback on financial markets.

Canadian Prime Minister Justin Trudeau said Ottawa will remain in a trade war with Washington for “the foreseeable future” even if there are “breaks for certain sectors.”

“Our goal remains to get these tariffs, all tariffs removed,” he added.