US slashes import rates for 90 nations, but maintains measures on Canadian exports
Donald Trump, who had insisted all week he wouldn’t back off from his sweeping tariffs, climbed down on Wednesday – at least temporarily.
The US president on Wednesday announced a 90-day pause on most new import tariffs, cutting them to 10% for dozens of countries to allow time for trade negotiations. But the retreat doesn’t apply to Canada.
The 25% tariffs already applied to Canadian-made cars, steel, and aluminum remain fully in force, leaving Canadian exporters at a continued disadvantage and domestic manufacturers burdened with higher input costs.
Trump’s decision comes just hours after enhanced reciprocal tariffs on imports from nearly 90 countries took effect, with rates ranging from 11% to 50%. The White House said the pause was part of a broader strategy.
"They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid," Trump told reporters when asked about his sudden reversal.
"This was his strategy all along," Treasury secretary Scott Bessent told reporters.
"He is reeling, he is retreating, and that is a good thing," said Senate minority leader Chuck Schumer, who slammed the move as a “government by chaos.”
Despite the continued penalties, the Canadian government said it is not standing still. Ottawa announced earlier Wednesday it would expand its own retaliatory measures, imposing matching tariffs on vehicles imported from the US, though Canadian officials clarified these would not apply to auto parts or Mexican-origin vehicles.
Commerce secretary Howard Lutnick, who said he was present while Trump drafted the tariff statement on Truth Social, called it “one of the most extraordinary Truth posts of his Presidency.”
In the post, Trump emphasized that “more than 75 Countries” had reached out to US officials, including the Departments of Commerce and Treasury, to open talks on issues such as tariffs, currency manipulation, and non-monetary trade barriers.
Read next: Canadian auto tariffs take effect amid escalating US trade dispute
The president said those nations “have not, at my strong suggestion, retaliated in any way.”
Meanwhile, the US stock market surged on the news, with the S&P 500 climbing 7% in a single day, marking its biggest jump in five years and reversing four consecutive days of losses.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
