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United States President Donald Trump’s tariff war has become a complicated roller coaster of international trade disputes.
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What tariffs are coming?
- March 12: United States to impose 25 per cent tariffs on all steel and aluminum imports
- March 20: China to impose 100 per cent retaliatory tariffs on Canadian canola oil, while pork and seafood will face a 25 per-cent levy. The tariffs are push-back against Canada for imposing a 100 per cent levy on electric cars from China and 25 per cent on steel and aluminum.
- April 2: The United States to impose reciprocal tariffs on nations that have levies on U.S. goods. Trump said Friday he was considering imposing retaliatory tariffs on Canadian dairy and lumber, as soon as this week, but U.S. Commerce Secretary Howard Lutnick told NBC’s “Meet the Press” on Sunday that those tariffs will wait until April 2.
What tariffs have been delayed?
The U.S. has issued a one-month delay on tariffs for products covered under the Canada-U.S.-Mexico Agreement (CUSMA).
A White House official told reporters on Thursday that CUSMA covers about 38 per cent of Canadian imports and 50 per cent of those coming from Mexico.
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The auto sector is included in the agreement, meaning auto tariffs will not be in effect for the month. Trump had previously announced a one-month reprieve for Stellantis NV, General Motors Corp. and Ford Motors Corp.
CUSMA protects almost all Canadian agriculture from tariffs, provided they have been declared as CUSMA compliant.
Which ones have not?
Canadian energy is not part of the CUSMA, meaning a reduced 10 per cent tariff will remain in place for the month.
Potash is also not included, though Trump temporarily reduced potash tariffs to 10 per cent.
Lutnick told NBC’s “Meet the Press” on Sunday that steel and aluminum imports will still face a 25 per cent tariff beginning on Wednesday.
Additionally, many Canadian exporters that would be considered CUSMA compliant haven’t gone through the process of being certified because they only face negligible tariffs until recently.
How has Canada responded?
Canada’s retaliatory tariffs on $30 billion worth of U.S. goods announced last week remain in place, though a second wave of duties due to come into effect within 21 days will be delayed until April 2, according to Finance Minister Dominic LeBlanc.
Incoming Prime Minister Mark Carney, who won the Liberal leadership race on Sunday, has pledged to keep Canada’s retaliatory tariffs in place.
Ontario Premier Doug Ford is imposing a 25 per cent surcharge on electricity exports to New York, Minnesota and Michigan.
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With files from Financial Post staff, The Canadian Press and Bloomberg News
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