United States (US) President Donald Trump has paused tariffs on some Canadian goods once again, sparking new frustration in the ongoing trade war between the two countries.
Canadian Finance Minister Dominic LeBlanc announced on X that the tariff pause until April 2 is only delayed on goods covered under the Canada-U.S.-Mexico Agreement (CUSMA) free trade treaty. According to CNN, CUSMA goods cover around 36 percent of Canadian imports into the US. Trump had previously announced a one-month reprieve on tariffs affecting autos, which are also covered under the CUSMA agreement.
As a result of the delay, Canada will not proceed with its second retaliatory tariff wave, LeBlanc said. Currently, the country is imposing tariffs on $30 billion worth of US goods, with plans to increase that to $155 billion if the Americans offer no reprieves within 21 days.
“My god, this is exhausting,” Maverix Private Equity founder John Ruffolo told BetaKit.
“The constant back and forth makes it impossible to plan!”
Kyle Feigenbaum
Healthybud
The walkbacks continue a back-and-forth pattern of policy changes surrounding the tariffs, which were originally slated to kick off in early February. As the threat approached, the Canadian government first responded by imposing 25-percent tariffs on $155 billion of American goods, before the countries struck a 30-day détente.
When that pause came to an end just two days ago Prime Minister Justin Trudeau reimplemented Canada’s retaliatory measures. Ontario Premier Doug Ford went forward with his own measures as well, cancelling the province’s $100-million contract with Starlink, the internet company owned by Trump associate Elon Musk, banning all US-based companies from taking part in provincial procurement, and adding a 25-percent surcharge on electricity sent to the US commencing March 10.
Following a call with the US President this week, Trudeau told reporters that Canada will continue to be in a trade war with the US for the foreseeable future, and that Canada’s goal is to get all tariffs removed. A spokesperson for Premier Ford told CTV News that Ontario is keeping US alcohol off LCBO shelves and going ahead with the electricity export tax until tariffs are removed entirely. Ford also told Global News this week that the cancellation of the Starlink contract is permanent, even if all tariffs are removed.
That action against Canada has galvanized leaders across the domestic tech industry, who denounced the US decision earlier this week. Some Canadian hardware startups faced increased costs, and big decisions about how they will be incurred, as a result of the tariffs.
Today’s news of a pause has not lessened the frustration felt by entrepreneurs across the country, however. Kyle Feigenbaum, CEO of Montreal-based dog food startup Healthybud, said his company’s product was included in the list of reciprocal tariffs that are now on pause, but told BetaKit: “The constant back and forth makes it impossible to plan!”
“With this looming threat that may last for the foreseeable future, we simply can’t plan,” Feigenbaum said “It makes it nearly impossible to plan for [the] future and properly manage our business.”
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For startups currently navigating the back-and-forth between nations, Ruffolo offered these words of advice: “Focus in on what you can control. You can control building your business, especially in Canada. Do not get distracted with the confusion in the White House.”
The trade war has led to a concerted push to buy Canadian products. Meat and seafood subscription box service truLOCAL, which exclusively uses Canadian suppliers, saw its best month for new subscriptions in nearly five years. SRTX CEO Katherine Homuth told BetaKit that Costco Canada “stepped up” and placed large orders from her garment company, taking stock that would have been sold in the US and subject to tariffs.
StandUp Ventures managing director Michelle McBane told BetaKit this was a reminder that the Canadian tech ecosystem thrives on collaboration, not division.
“Now more than ever, we need to come together as a community and support each other through uncertain times,” McBane said. “It’s been great to see so many new initiatives coming out of this crisis.”
With files from Josh Scott and Madison McLauchlan.
Feature image courtesy CPAC.