Despite Trump’s tariff pause, uncertainty looms over Canadian economy

By Michel Saba
Canadian Press in Global News
February 4, 2025
Category: Business & Politics
Region: Canada, United States

Donald Trump & David Eby

Uncertainty still hangs over the Canadian economy despite U.S. President Donald Trump announcing a 30-day pause in tariffs that were to take effect today. The temporary reprieve halts — at least for now — a continental trade war that economists on both sides of the border warned would raise prices. Trump’s decision meant Canada and the provinces also halted their moves to retaliate including with tariffs and bans on U.S. alcohol sales north of the border. Trump on Saturday signed an order to impose 25 per cent across-the-board tariffs on Mexican and Canadian imports, with a lower 10 per cent tariff on Canadian energy. On Monday, following two phone calls with Prime Minister Justin Trudeau, Trump said the tariffs would be off the table for 30 days to see if the two countries could reach a “final economic deal.”

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