24 March: In a surprising shift, the White House has signaled that U.S. President Donald Trump may hold off on imposing new sector-specific tariffs scheduled for April 2 — a move that could temporarily ease tensions in the escalating trade war. A senior White House official, speaking on background, said no final decision has been made regarding tariffs on particular industries like autos, semiconductors, or pharmaceuticals.
“While the president has discussed sectoral tariffs publicly, we may see them imposed on April 2 — or we may not,” the official said in an email, adding that deliberations are still ongoing.
This comes as Trump continues to advocate for reciprocal tariffs — a policy approach where countries that maintain tariffs on U.S. goods, or follow economic policies seen as unfair to American interests, face retaliatory duties. Canada is among the countries notified of such impending measures, although the exact rates remain unclear.
Trump has previously floated the idea of imposing 25% tariffs on the auto industry and other key sectors. While these measures were initially expected to roll out alongside broader tariffs, the administration has delayed some of them following pressure from major American auto manufacturers, who sought exemptions.
Prime Minister Mark Carney, speaking on the campaign trail Monday, confirmed that Canada is prepared to respond decisively if Trump proceeds. The Liberal government has already introduced tariffs on $30 billion worth of American goods and is ready to launch a second round of retaliatory tariffs worth an additional $125 billion.
Carney criticized Trump’s trade tactics, saying the U.S. is underestimating Canada’s resilience. “They think they can weaken us, that they can own us,” Carney said. “But we will come out stronger and negotiate a fair deal for Canadians.”
Despite the intensifying trade conflict, Carney also revealed that he has not yet spoken to President Trump since being sworn in as prime minister on March 14. Liberal campaign officials said the Canadian embassy has reached out to the White House to arrange a conversation, but there has been no response. According to the campaign, every other G7 leader has already extended congratulations — except for Trump.
As the April 2 tariff deadline looms, it remains uncertain which industries will be targeted, and whether Canada’s firm stance will result in a diplomatic breakthrough or further economic confrontation.
