Trump’s tariff plans have caused the stock market to sink and alarmed U.S. consumers
US President Donald Trump on Thursday delayed 25 percent tariffs on many imports from Mexico and some imports from Canada for a month, bringing reprieve to companies and consumers after blowback on financial markets.
Trump’s tariff plans have caused the stock market to sink and alarmed U.S. consumers.
Trump has insisted that the tariffs could be resolved by fixing the trade deficit. He emphasized while speaking in the Oval Office that he still plans to impose “reciprocal” tariffs starting on April 2.
Read: China, Canada strike back at Trump’s tariffs: Is Mexico next?
“Most of the tariffs go on April the second,” Trump said before signing the orders.
“Right now, we have some temporary ones and small ones, relatively small, although it’s a lot of money having to do with Mexico and Canada,” he said.
The three countries are partners in a North American trade pact.
Canada’s response
In response, Canada will delay a planned second wave of retaliatory tariffs on C$125 billion of US products until April 2, finance minister Dominic LeBlanc said in a post on X.
Read: Trade wars deepen as China and Canada retaliate after Trump’s tariffs come into effect
For Canada, the amended White House order also excludes duties on potash, a critical fertilizer for US farmers, but does not fully cover energy products, on which Trump has imposed a separate 10 percent levy. A White House official said that is because not all energy products imported from Canada are covered under the U.S.-Mexico-Canada Agreement on trade that Trump negotiated in his first term as president.
Trump said he was not looking to extend the exemption on the 25 percent tariff for autos for another month.
Mexico’s response
Mexico President Claudia Sheinbaum has planned to announce any retaliatory measures on Sunday, but Trump credited her with making progress on illegal immigration and drug smuggling as a reason for again pausing tariffs that were initially supposed to go into full effect in February.
“I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the border,” Trump said.
