Trump pauses tariffs for most nations, unclear if it affects Canada
U.S. President Donald Trump said Wednesday that he is immediately pausing tariffs on most nations for 90 days following market turmoil triggered by his trade war with the world — but it was not immediately clear what the impact will be on Canada.
Trump said he made the decision after more than 75 countries called his administration "to negotiate a solution." In a social media post, he said "these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States."
"I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%," Trump posted.
A 10%baseline tariff on imports to the U.S. from most countries, and higher duties on dozens of nations, came into force just after midnight Wednesday.
Trump earlier Wednesday posted that Americans should "BE COOL!" and "Everything is going to work out." But the U.S. stock market remained unsteady after the world's two largest economies intensified their tariff war.
Trump increased tariffs on Chinese goods to 104% and Beijing responded with additional duties on U.S. imports — pushing its total tariffs on U.S. goods to 84%.
While most of the world got a reprieve, Trump posted that China has shown a "lack of respect" and announced he's increasing tariffs on Chinese imports to 125%, effective immediately.
White House Press Secretary Karoline Leavitt told reporters at the White House that the pause on reciprocal tariffs will allow for negotiations with countries around the world. She said it also means the universal tariff level will be brought down to 10%.
U.S. Treasury Secretary Scott Bessent confirmed Canada and Mexico are included in the 10% universal levy — but the actual impact isn't clear.
The White House has not said whether it will change the economy-wide fentanyl-related duties which hit Canada last month before being partially walked back. Imports to the United States that do not comply with the Canada-U.S.-Mexico Agreement on trade, also called CUSMA, were still being slapped with 25% tariffs.
The White House confirmed tariffs on automobiles, steel and aluminum imports to the U.S. remain in place.
READ: Canada imposes more retaliatory tariffs as Trump's trade war hits the world
Ottawa added to its retaliatory measures earlier Wednesday in response to the automobile duties by implementing similar tariffs on vehicles imported from the United States. Unlike the American duties, Canada's tariffs will not affect auto parts or Mexican vehicles and components.
Trump's attempt to realign global trade is causing cracks to appear in Republican solidarity. Texas Sen. Ted Cruz joined seven Republicans on Fox News' Sean Hannity Show Tuesday to urge the president to "make deals and actually work to lower tariffs."
America's top trade official also faced pushback from lawmakers for a second day on Wednesday. United States Trade Representative Jamieson Greer maintained his support for Trump's trade agenda as Republican and Democrats alike questioned the president's tariff rollout and the uncertain goals of his massive trade agenda.
Richard Neal, a Democratic congressman for Massachusetts, told the House Committee on Ways and Means on Wednesday that the trade war is "not only dumb, it’s unconstitutional."
He pointed to CUSMA, negotiated during the first Trump administration, and said it's up for mandatory review in 2026. Instead, Neal said, Trump has imposed tariffs on America's closest neighbours.
Republican Rep. David Schweikert asked whether Greer and his team "spend time analyzing the infrastructure realities we have to actually be able to produce these products."
