Canada will keep its initial retaliatory tariffs against the United States, even though President Donald Trump has delayed imposing 25% tariffs on several Canadian imports for a month, two senior Canadian government officials told the Associated Press. Trump announced on Thursday that he would postpone the tariffs for a month to ease growing concerns of a wider trade war. However, Canadian officials, speaking anonymously as they were not authorised to comment publicly, confirmed that Canada’s first wave of tariffs will remain in place. Canada had already imposed CA$30 billion (US$21 billion) worth of tariffs on various US goods, including orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and pulp and paper products. Canada pauses second round of tariffs Finance Minister Dominic LeBlanc said Canada had decided to pause its second wave of tariffs following Trump's executive order delaying some duties. The next round of tariffs—valued at CA$125 billion (US$87 billion)—was scheduled to take effect in three weeks. These tariffs would have targeted US electric vehicles, fruits, vegetables, dairy, beef, pork, electronics, steel, and trucks. Ontario retaliates with electricity tariffs Ontario Premier Doug Ford also announced that, starting Monday, the province would charge 25% more for electricity supplied to 1.5 million Americans in response to Trump's trade policies. Ontario exports electricity to Minnesota, New York, and Michigan. Ford made it clear that Ontario would keep its tariffs despite Trump's temporary suspension. "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," Ford posted on X. Other provinces push back British Columbia Premier David Eby also signalled that his province would introduce new legislation allowing it to impose fees on commercial trucks transporting US goods through British Columbia to Alaska. "Yet again, the president is sowing uncertainty and chaos, trying to undermine our economy by imposing tariffs and then pulling them off," Eby said. "Canadians won’t let up until the tariffs are gone for good." Trudeau warns of long-term trade war Prime Minister Justin Trudeau predicted that tensions between Canada and the US would continue “for the foreseeable future”. Speaking after what he described as a “colourful but constructive” call with Trump, Trudeau said the conversation became heated when Trump criticised Canada’s dairy industry protections. A Canadian government official, who spoke anonymously, claimed that Trump used profanity during the call, while Trudeau did not. When asked about the call, White House Press Secretary Karoline Leavitt said Trump had already shared his views on the matter during a meeting with reporters in the Oval Office. USMCA exemptions and trade impacts Trump's executive order stated that imports from Mexico and Canada complying with the 2020 USMCA trade pact would be exempt from the 25% tariffs for a month. However, certain Canadian potash exports would still face a 10% tariff, along with some Canadian energy products. A White House official, speaking anonymously, estimated that 62% of imports from Canada and 50% of imports from Mexico would still be taxed under Trump's new trade measures. Trump's trade war escalates On Tuesday, Trump launched a fresh trade war, imposing new tariffs on Canada, Mexico, and China—the US's three biggest trading partners. These moves triggered immediate retaliation, causing financial markets to drop sharply. A day after the tariffs took effect, Trump granted a one-month exemption for US automakers, following discussions with executives from Ford, General Motors, and Stellantis—the parent company of Chrysler and Jeep. His press secretary later revealed that Trump urged car manufacturers to shift production to the US to avoid tariffs. Despite Trump's claims that the US "doesn’t need Canada", the country remains a key supplier of critical resources. Nearly 25% of the oil consumed daily in the US comes from Canada, making up 60% of US crude oil imports. Canada also supplies 85% of US electricity imports. Beyond energy, Canada is the largest foreign supplier of steel, aluminium, uranium, and 34 critical minerals and metals—resources the Pentagon considers essential for US national security. Each day, approximately CA$3.6 billion (US$2.7 billion) worth of goods and services cross the US-Canada border. (with inputs from agencies)
