---
title: The U.S. and Canada Announce a Temporary Tariff Suspension until April 2, 2025
description: As talks are expected to resume, both the U.S. and Canada have implemented a temporary tariff suspension until April 2, 2025.
image: https://blog.coleintl.com/hubfs/Images/Trade%20News%20pictures/Free%20trade-4.png
---
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# The U.S. and Canada Announce a Temporary Tariff Suspension until April 2, 2025
Trade Update: March 7,2025
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The U.S. and Canada Announce a Temporary Tariff Suspension until April 2, 2025
3:14
**With this tariff suspension being temporary, importers in the U.S. and Canada are encouraged to prepare for possible trade policy changes before the new deadline.**
In recognition of the structure of its automotive supply chain, the United States has announced a temporary tariff suspension on certain imports. Canada has also announced the suspension of its second wave of tariffs on U.S. imports.
According to the White House, U.S. President Donald Trump has [exempted USMCA-eligible imports from Canada and Mexico](https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-adjusts-tariffs-on-canada-and-mexico-to-minimize-disruption-to-the-automotive-industry/) from the 25% tariffs imposed earlier this week.
This temporary tariff suspension will remain in effect until April 2, 2025.
In response, Canadian Finance Minister Dominic LeBlanc announced that [Canada will pause its second phase of counter tariffs](https://twitter.com/DLeBlancNB/status/1897762231560950180) on U.S. imports.
“Canada will not proceed with the second wave of tariffs on $125 billion of U.S. products until April 2, while we continue to work for the removal of all tariffs,” LeBlanc posted on the social media platform X.
## **New executive orders to adjust import tariffs**
Yesterday, Trump issued an executive order amending [tariffs to imports from Canada](https://www.whitehouse.gov/presidential-actions/2025/03/amendment-to-duties-to-address-the-flow-of-illicit-drugs-across-our-northern-border-0c3c/)—which were initially imposed to address the flow of illicit drugs across U.S. borders—effective 12:01 a.m. Eastern Standard Time today.
This applies to goods entered into the U.S. for consumption or those withdrawn from a warehouse for consumption on or before this date.
The order aims to minimize disruption to the U.S. automotive industry and its workers, which is currently trading substantial volumes of automotive parts and components across the borders.
Under this amendment, USMCA-eligible imports from Canada that are entered free of duty under the terms of [General Note 11](https://hts.usitc.gov/reststop/file?release=currentRelease&filename=General%20Note%2011) to the Harmonized Tariff Schedule of the United States (HTSUS) will remain exempt from the additional 25% tariff previously imposed.
Moreover, the tariff on potash—a key component of fertilizers used by U.S. farmers—will be reduced from 25% to 10%.
A similar executive order was [announced for Mexico](https://www.whitehouse.gov/presidential-actions/2025/03/amendment-to-duties-to-address-the-flow-of-illicit-drugs-across-our-southern-border/).
## **Summary of the tariffs that apply right now**
On the U.S. side, these are the duties that are currently imposed on Canadian and Mexican imports, updated on March 6, 2025:
- No tariffs on those goods from Canada and Mexico that claim and qualify for USMCA preference.
- 25% tariffs on goods that do not satisfy USMCA rules of origin.
- 10% tariffs on those energy products imported from Canada that fall outside the USMCA preference.
- 10% tariffs on any potash imported from Canada and Mexico that falls outside the USMCA preference.
Canada has not yet officially announced whether it will suspend the initial counter tariffs on C$30 billion worth of U.S. imports.
However, two senior Canadian government officials, speaking to the Associated Press on the condition of anonymity, said that the [first phase of tariffs will remain](https://apnews.com/article/trudeau-trump-tariffs-trade-war-58eaa333ef96d4f17965bb7004e6bee7).
**At Cole International, we’re following this story closely and will keep you updated as it evolves. To discuss the impact of this update on your business, please reach out to one of** [**our trade professionals**](https://www.coleintl.com/contact-us)**.**
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