Trump Pause tariffs on Canadian Goods: Trump is not reducing tariffs on international goods including Canada and have already imposed the 25% tariff on Canadian goods. But now the PM of Canada Justin Trudeau and President Trump are talking to solve the issue. Recently, Trump announce to pause tariffs on Canadian items till 2 April. So now business entities have flexibility for 1 month to trade without tariffs. Check the detailed proposal of Trump and his temporary pause on tariff in this article.
Trump Pause tariffs on Canadian Goods
US president has delayed 25% tariffs on few selected goods imported from Canada. These products can be traded in USA without tariffs till 2 April 2025. After that it will again start to impose 25% tariffs on all goods imported from US most intra traded country Canada. The delay in the tariff is implemented after discussion with Canadian and Mexico administrators with US officials. During the discussion all 3 countries agreed to delay the additional tariffs on imported items.
These countries are delayed to impose tariffs
Mexico and Canada are 2 major countries neighbouring the US which are trading through exporting their products to the USA markets. The Trump administration has already imposed the 25% tariffs on these countries, but is now pausing these taxes on both countries. The Canada and Mexico are tied with the US markets through multiple treaties and agreements. USMCA is one of the major agreement between US, Mexico and Canada which are making all of three countries a free trade zone.
So by following this agreement, the trump administration allowed to delay or pause the tariffs on Canadian goods for a few items. However the pause is applicable till 2 April 2025 and after that the usual taxes will be started to collect from the government of US accordingly.
Not all items covered in the pause
According to the official statement by the US authorities, Not all Items covered in the temporary pause in 25% tariffs on Canadian goods. Only those items which are covered under the USMCA agreement are included in this delay. Approximately 38% of the products are included in the USMCA agreement.
Apart from this, other 62% items will remain be and changed and authority in USA will charge 25% tariff on the importation of the Canadian goods in the country. If the deadline ends, US will again start to correct 25% tariff tax to all items exported by Canada.
Justin Trudeau on Trump Decision of Pause tariffs on Canadian Goods
According to the official statement with the Canadian Prime Minister Justin Trudeau, he is seeing unhappy with the Temporary delaying in the 25% tariff on intra trade between countries. He wrote on social media dead ottawa will Remain in a trade wall with Washington for the foreseeable future.
He also told that the temporary brakes for certain sectors in the trade will not able to dismiss the overall goal of the country. Instead of getting relief on few products to trade in USA, The authority is continuously working to remove 25% tariff on all exported items to USA.
Donald Trump charging heavy tariff on international imports
Donald Trump was already promoting that he will do all the necessary changes to impose the heavy tariff on goods exported by Canada to USA. Apart from the Canada, the country have also introduced tariff plans for other countries including Mexico in their neighbourhood and also talking to start new tariff for India too. He have a clear vision to increase the growth of the country to promote domestic items in USA and allow International countries to reduce tariffs on USA goods.
Since Canada is making most of the trade with USA, so the 25% tariff will directly impact on the economic growth of the country and will be a subject to the inflation, chaos etc in few years if Canada did not maintain the appropriate policies and changing their business strategy according to the USA.