Canada will not be impacted by the 10% baseline tariff the U.S. announced today along with a 90- day pause on “reciprocal tariffs” for countries that have not retaliated against the U.S. CUSMA-compliant goods are still tariff-free. The tariffs on steel, aluminum and auto parts are still in place.

In a social media post, Liberal Leader Mark Carney said the tariff pause was “a welcome reprieve for the global economy.”

He added: “The President has signalled that the U.S. will engage in bilateral negotiations with a number of other countries. This will likely result in a fundamental restructuring of the global trading system.”

This follows an announcement significantly increasing tariffs on China.

“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125 per cent, effective immediately,” President Donald Trump wrote on social media.

The escalation followed Beijing’s decision to raise tariffs on U.S. imports to 84%, in response to Washington’s earlier imposition of a 104% tariff on Chinese goods.

While ramping up pressure on China, Trump noted that over 75 countries have opened trade negotiations and refrained from retaliation. For those nations, he authorized “a substantially lowered Reciprocal Tariff … of 10%, also effective immediately.”

The EU remains an outlier, with a 25% retaliatory tariff set to take effect in response to U.S. duties on steel, aluminum, autos, and most other goods.

The announcement sparked a major market rally, with the S&P 500 surging nearly 6% and the Nasdaq jumping 8%.