Canada Gives New Lifeline on Trump Tariffs [Video]

Canada’s finance ministry said it will give its country’s businesses a six-month relief from its counter-tariffs on certain U.S. goods imports, but warned this temporary measure should be used to “adjust their supply chains and prioritize domestic sources”.

Why it Matters

The news offers a welcome reprieve for U.S. exporters to Canada, who faced lower demand as a result of the tariff war sparked by President Donald Trump, though questions remain about their longer-term trading relationships north of the border.

It is a similar story elsewhere, such as in the European Union (EU), where officials have made clear that they are looking beyond the U.S.—now seen as unreliable partner—for their future trade growth.

These supply chain shifts away from the U.S. increase the pressure on Trump’s strategy—to use tariffs to draw more investment in manufacturing and production into he U.S.—to pay off. Nvidia’s $500 billion investment in the U.S. suggests it might.

What to Know