Thursday, November 20, 2025
Trump suspends Canada, Mexico tariffs
BY Insider Desk
March 07, 2025

US President Donald Trump on Thursday suspended the 25% tariffs imposed earlier this week on most goods from Canada and Mexico, marking another shift in a trade policy that has unsettled financial markets and raised concerns over inflation and economic growth.
The exemptions, which cover the two largest US trading partners, will remain in place until April 2. At that time, Trump vowed to implement a global system of reciprocal tariffs on all US trading partners unless Canada and Mexico meet his demands regarding fentanyl trafficking.
Canada responded by delaying its planned retaliatory tariffs on C$125 billion worth of US goods until the same date. Finance Minister Dominic LeBlanc confirmed the decision in a statement on social media platform X.
The revised tariff order excludes duties on potash, a key fertilizer for US farmers, but maintains a separate 10% levy on some Canadian energy products. A White House official clarified that not all energy imports from Canada fall under the US-Mexico-Canada trade pact.
Trump introduced the tariffs citing a national emergency over fentanyl-related deaths, alleging that the drug and its precursor chemicals enter the US from China via Canada and Mexico. He has also imposed a 20% tariff on all imports from China.
The trade uncertainty has rattled markets, with the S&P 500 falling 1.8% on Thursday, continuing its downward trend since mid-February. Canadian Prime Minister Justin Trudeau, set to step down on Sunday, warned that the US-initiated trade war is unlikely to end soon.
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