The 50% tariff hike on a range of Canadian goods was announced in July, with Trump signing a series of proclamations citing Canada’s “discriminatory treatment” of American products.
The new levy, a retaliation for Canada’s tariffs, would apply to a range of Canadian goods, including electronics, sports equipment, and essential oils.
According to economists, the tariffs could have had significant economic consequences if enacted. TD Economics estimated that, if maintained, they could reduce Canadian GDP growth by 0.3 to 0.6 percentage points over the following year.
A Canadian Federation of Independent Business survey of 1,833 firms found that 77% of affected exporters expected revenue losses, while 35% expected their revenue to fall by at least half.
In a new proclamation issued Tuesday suspending the tariffs, Trump said: “Canada has expressed a commitment to remove the discriminations or unreasonable and unequal impositions.”
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