US President Donald Trump delayed some duties targeting Canada and Mexico on Thursday. He prompted Ottawa to suspend an upcoming wave of countermeasures, in moves that provide relief to businesses and consumers following financial market backlash. Stock markets plummeted as Trump’s tariffs of up to 25 percent took effect Tuesday. Just as experts warned that blanket levies might drag on US growth and spike inflation.
However, Trump issued orders Thursday to postpone the new tariffs on Canadian and Mexican products covered by a North American trade accord, dismissing claims that his actions were motivated by market turbulence. The halt, which will extend until April 2, provides respite to automakers. In the auto sector, parts cross the North American border many times during manufacture.
Following negotiations with the “Big Three” US automakers (Stellantis, Ford, and General Motors), Washington first declared a one-month exception for vehicles entering the United States-Mexico-Canada Agreement. According to a White House official, approximately 62% of Canadian imports would still be subject to the new tariffs. Albeit many of these are energy products, which will be taxed at a 10% rate.
Trump temporarily halts tariffs on Canada and Mexico
Mexico’s President Claudia Sheinbaum spoke with Trump early Thursday morning. In an attempt to avoid the 25% tariffs he put on her country’s exports earlier in the week. On March 4, tariffs on imports from Canada, Mexico, and China went into effect, sparking an instant economic war.
“It appears that Sheinbaum’s conversation with Trump was beneficial.” The US president said on social media. “After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay tariffs on anything that falls under the USMCA Agreement.” The United States-Mexico-Canada Agreement, or USMCA, was negotiated by Trump during his first term and established a free trade zone between the three North American countries. He said that tariffs would be deferred until April 2.
“I did this as an accommodation and a show of respect for President Sheinbaum. Our relationship has been extremely excellent. We are working hard together on the border to stop illegal immigration from entering the United States as well as fentanyl.” Trump said. “Thank you to President Sheinbaum for your hard work and cooperation!”
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