Canada and Mexico were exempted because both countries are facing 25% tariffs imposed last month to pressure them to do more to prevent fentanyl trafficking and illegal immigration. Goods compliant with the U.S.-Mexico-Canada Trade Agreement will see no tariffs, and noncompliant goods will see a 25% tariff, plus noncompliant energy and potash goods will see a 10% tariff, according to a White House fact sheet.
"While it's progress that further tariffs were not imposed on Canada yesterday, the president's actions will reverberate here in Canada and across the world," said Carney, who leads Canada's Liberal Party. He added the tariffs imposed on his nation are "unjustified, unwarranted and in our judgment misguided."
But 25% tariffs on all foreign-made cars and trucks began Thursday, and levies on foreign-made automotive parts are set to begin May 3, in line with 25% tariffs on aluminum and steel imports that had been in place since last month.