U.S. President Donald Trump unveiled his long-promised plan seeking to rebalance global trade with reciprocal U.S. tariffs on April 2, but didn’t impose new tariffs on Canada.
Instead, a senior White House official said the initial broad 25 percent tariff placed on goods from Canada and Mexico in relation to illegal migration and fentanyl trafficking will remain in place. The current exemptions for goods covered by the United States-Mexico-Canada Agreement (USMCA) free trade deal, implemented on March 6, also remain in place. Canada also previously received a 10 percent tariff on its energy exports that will also remain in place.
“At this time, Canada and Mexico, they continue to be subject to the national emergency related to fentanyl and migration, and that tariff regime will persist while those conditions persist, and they will be subject to that regime, and not the new regimes,” said the official in speaking to reporters before Trump’s announcement….