Canada now has some reprieve from Trump’s tariff hammer. Trump paused the 50% tariffs on $20B of Canadian imports just hours before they were set to take effect, giving both sides three days to finalize a deal. The levies would have covered roughly 5% of Canada’s annual US exports, pushing the average tariff rate on Canadian goods from 4.68% to 6.27%.
- The tariffs cover goods ranging from hockey sticks and electronics to plastics and building materials, a relatively narrow but politically sensitive slice of trade.
- Canada’s Chamber of Commerce warned the tariffs could disrupt cross-border commerce and threaten 13M American jobs tied to USMCA trade.
USMCA hangs over: Canadian PM Mark Carney confirmed “substantial progress” but said work remains, with autos still a key sticking point. A deal could also clear the way for broader USMCA negotiations after the pact missed its July renewal, triggering annual reviews until it expires in 2036. Capital Economics warned that failure could revive tit-for-tat tariffs, slow growth, and weaken business confidence across North America.
