Trump pausing tariffs on some Canadian goods until April 2

U.S. President Donald Trump said Thursday (March 6) that he is once again pausing his tariffs on Canada, offering another roughly month-long reprieve from a 25 per cent levy.

But it may only apply to some goods. In announcing this latest pause, a White House official told some U.S. outlets that the reprieve would only apply to Canadian exports that are compliant with the Canada-U.S.-Mexico Agreement (CUSMA) — and not goods that are sold into the U.S. outside of that trade deal, CBC News reports.

The Associated Press is reporting that roughly 62 per cent of imports from Canada would likely still face the 25 per cent tariffs because they're not "USMCA compliant," according to a White House official who wasn’t named.

"The only thing that’s certain today is more uncertainty. A pause on some tariffs means nothing. Until President Trump removes the threat of tariffs for good, we will be relentless," wrote Ontario's Premier Doug Ford on his LinkedIn page, shortly after the announcement was made. 

Ford says the province plans on moving ahead with a tax on electricity sent to several U.S. states starting early next week as Canada’s trade war escalates. A 25 per cent tax will be confirmed on Monday and is likely to be activated by Tuesday even with a temporary tariff reprieve. 

READ MORE: Trump's 25% tariffs spark recession fears; travel industry pivots to limit impact

The break from a universal tariff, active until April 2, appears to be happening, but Trump said Thursday that he is moving forward with a previously announced 25 per cent tariff on all steel and aluminum imports next week. (Canada is a leading exporter of both metals to the U.S.)

Canada's auto sector, meanwhile, got a reprieve from tariffs earlier this week. 

READ MORE: As Canadians rethink U.S. travel, industry pros pivot to mitigate potential losses

On the heels of this latest pause, Canada has agreed to delay its retaliatory tariffs worth $125 billion until April 2, CBC News reports. 

Speaking with CBC's Power & Politics yesterday, Finance Minister Dominic LeBlanc said Canada wants Trump's tariffs removed completely, with trade rules returned to how they were before he was sworn into office in January.

U.S. Commerce Secretary Howard Lutnick said Tuesday (March 4) that Trump will “probably” announce a compromise with Canada (and Mexico) on tariffs.

His comments, made to “Fox Business,” came after the U.S. stock market closed for a second day of sharp declines.

While Lutnick did not say what Trump would do exactly, he suggested the U.S. president would be open to meeting Canada and Mexico “in the middle.”

A “dumb” trade war

The Trump administration, last Tuesday, imposed sweeping 25 per cent tariffs on Canadian (and Mexican) imports – and a 10 per cent levy on Canadian energy exports – after an initial 30-day pause.

It appears Trump is using tariffs as a negotiating tool, based on allegations that Canada and Mexico were failing to stop the flow of fentanyl into the U.S.

Prime Minister Justin Trudeau says negotiations are underway to secure tariff relief for some sectors. But he warned that a trade dispute will continue "for the foreseeable future."

Earlier this week, Trudeau claimed the aim of Trump’s “dumb” trade war is to usher in the “complete collapse” of the Canadian economy and make it easier for the United States to annex Canada.

Trudeau, who will step down as prime minister after the ruling Liberal party chooses a new leader on Sunday, says Canada will remain defiant against U.S. aggression.

Economy concerns

There are, however, ongoing concerns about how Canada’s economy will fare amid the economic disruptions. 

According to Desjardins’ deputy chief economist, Randall Bartlett, Canadians can expect to enter a recession by the middle of this year if this continues.

Which could impact the travel industry. Laurie Keith, CEO at Ontario-based Boutique Travel Services, believes the ripple effect of Trump’s tariffs will “definitely have an impact on the economy, including the travel industry.”

Amid calls to “buy Canadian,” along with requests from politicians to cancel trips to the U.S., and the weak loonie, more Canadians are also rethinking trips south of the border.

“For now, our clients are seeking alternative destinations, but I feel that as consumer confidence begins to dwindle, job losses start to come into effect, and the cost of living increases due to these tariffs, we will be facing another arduous time as a nation,” Keith said.

Canadians cancel travel 

A Leger poll released last month of 1,553 Canadian adults showed that nearly half (48 per cent) are less likely to visit the United States amid shifting Canada-U.S. relations.

In a report this week, Flight Centre Travel Group Canada said its leisure bookings to U.S. cities dropped 40 per cent in February from the same month in 2024, while one in five customers cancelled their trips to the U.S. over the past three months.

“We’re making those choices to travel to destinations that really align more with our values,” Flight Centre spokeswoman Amra Durakovic told the Canadian Press on March 5.

The Association of Canadian Travel Agencies and Travel Advisors (ACTA) issued a statement this week, saying it is "extremely concerned" about the situation.

"If these tariffs are not short-lived the direct impact on Canadians' purchasing power will significantly harm travel advisors as their clients delay or cancel travel plans due to financial constraints," ACTA said.

Both ACTA and the Canadian Association of Tour Operators (CATO) are calling on travel and tourism professionals to take action.

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