Fri Mar 07 08:10:00 UTC 2025: ## Trump Delays Tariffs on Canadian and Mexican Goods, But Trade War Rages On

**Toronto, Canada (AP) —** President Donald Trump announced a one-month delay on 25% tariffs on many imports from Canada and Mexico, offering a temporary reprieve amid escalating trade tensions. However, this pause has not appeased Canadian officials, who maintain their retaliatory tariffs against the U.S.

The delay, enacted via executive order, applies to goods compliant with the USMCA trade agreement. However, a significant portion of Canadian imports (roughly 62%) remain subject to the tariffs due to non-compliance with the agreement. Similarly, approximately half of Mexico’s non-compliant imports will also face the tariffs. Potash imports from Canada will face a 10% tariff, mirroring Trump’s proposed rate for Canadian energy products.

Despite the temporary postponement, Canada has shown no intention of backing down. Two senior Canadian government officials confirmed that Canada’s initial $21 billion USD in retaliatory tariffs, targeting goods such as orange juice, peanut butter, and appliances, remain in effect. While a second wave of $87 billion USD in retaliatory tariffs has been suspended, officials indicated this was a direct response to Trump’s executive order, not a sign of de-escalation.

Provincial governments have also taken action. Ontario Premier Doug Ford announced a 25% tariff on electricity exports to the U.S., stating the measure will remain despite the temporary tariff pause. British Columbia Premier David Eby plans to introduce legislation to levy fees on U.S. trucks passing through the province to Alaska. Other provinces are continuing to keep American alcohol off shelves.

Canadian Prime Minister Justin Trudeau described a tense phone call with President Trump, where Trump reportedly used profanity while criticizing Canada’s dairy industry. Trudeau characterized the ongoing trade dispute as a protracted trade war.

The initial tariffs, imposed by Trump Tuesday, sent global markets into a downward spiral. While Trump granted a one-month exemption for U.S. automakers after speaking with industry leaders, urging them to shift production domestically, the overall impact of this trade war continues to cause significant uncertainty. The economic interdependence between the U.S. and Canada, with billions of dollars in daily cross-border trade, remains a key factor in the ongoing dispute.

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