Trump Hints at Sector Exemptions in Next Round of Tariffs, Canada Awaits Final Decision

As the United States prepares to announce a fresh wave of tariffs on April 2, President Donald Trump and the White House are signaling that some sectors may be granted exemptions — a move that could offer temporary relief to trade partners like Canada. Though the exact details remain unclear, the administration is leaving the door open to modifications, with no final decision yet on whether sector-specific tariffs will be included in the upcoming round.

A senior White House official, speaking to CTV News, suggested that the threatened sectoral tariffs may not be implemented on April 2 as previously indicated. While Trump has been vocal about pursuing reciprocal tariffs globally, internal discussions suggest that certain industries could be spared — for now. Bloomberg News and The Wall Street Journal both reported over the weekend that the administration is considering targeted exclusions, adding to speculation.

Treasury Secretary Scott Bessent confirmed that the administration is leaning toward a country-by-country approach, offering tailored tariff rates and leaving room for negotiations. “Each country will receive a number that we believe represents their tariffs,” Bessent said in a Fox News interview, indicating that while some nations may face steep rates, others could be subject to more modest measures.

At a press conference on Monday, following the announcement of a new Hyundai steel plant in Louisiana, Trump was asked whether certain sectors might be excluded from the tariffs. He responded by calling April 2 “Liberation Day,” stating that he may “give a lot of countries breaks,” while reiterating the principle of reciprocity. He added that not all tariffs would take effect on that day and implied a phased or selective approach could be adopted.

The April 2 deadline also marks the expiration of a one-month exemption for auto imports from Canada and Mexico, raising tensions over the fate of North American trade under the Canada-U.S.-Mexico Agreement (CUSMA). Trump had previously delayed a 25 per cent tariff on these imports, but that grace period is now ending.

Canada, meanwhile, has maintained its retaliatory tariffs on nearly $30 billion worth of American goods — including steel, aluminum, orange juice, wine, and spirits — and insists those measures will remain until the U.S. lifts its trade restrictions entirely. As both nations brace for the next chapter in the ongoing trade dispute, the coming days will be pivotal in determining whether economic diplomacy can prevail or whether tensions will escalate further.