Trump threatened to escalate tariffs beyond 35% if Canada opts to retaliate with tariffs on U.S. goods. Canadian goods are also subject to sector-specific tariffs, such as 50% levies on steel and aluminum as well as 25% tariffs on non-USMCA compliant autos and auto parts.

OTTAWA — Canada is delaying its plans to slap retaliatory tariffs on U.S. steel and aluminum after President Donald Trump sent a letter extending the deadline for trade negotiations between the two North American neighbors — though he also threatened to impose higher tariffs.