Trump announces one-month tariff pause on some Canadian goods, lowers potash levy

Prime Minister Justin Trudeau did not share many details of his conversation with Trump, only calling it a 'colourful call' but a 'very substantive call.'

WASHINGTON — U.S. President Donald Trump has signed an executive order that pauses tariffs on some Canadian imports linked to the auto industry that comply with the Canada-U.S.-Mexico Agreement, and also lowers levies on potash to 10 per cent.

The order, read out in the Oval Office on Thursday, says the tariff relief is linked to maintaining the flow of parts to American car manufacturers and to helping farmers.

It was not clear exactly what would be included in the exemptions.

Markets have been in turmoil since Trump followed through Tuesday on his threat to impose sweeping economy-wide tariffs on Canada and Mexico, with a lower 10 per cent levy on Canadian energy.

Trump is denying suggestions that the growing number of carve-outs for certain industries is linked to market pressure.

He says there will be “a little short term interruption” but he doesn’t “think it will be big.”

This report by The Canadian Press was first published March 6, 2025.

By Kelly Geraldine Malone, The Canadian Press