President Trump postpones tariffs on Mexican and Canadian products
President Trump delays tariffs on Mexican and Canadian goods for four weeks, causing economic uncertainty.
President Trump delays tariffs on Mexican and Canadian goods for four weeks, causing economic uncertainty.
President Trump delays tariffs on Mexican and Canadian goods for four weeks, causing economic uncertainty.
President Donald Trump announced a four-week postponement of tariffs on Mexican and Canadian products, reversing a decision made earlier this week.
"This comes from that Canada has done an enormous amount, they've offered us an enormous amount on fentanyl, and so is Mexico," said Commerce Department Secretary Howard Lutnick.
Imports from Mexico that comply with the 2020 USMCA trade pact would be excluded from the 25% tariffs for a month, according to the orders signed by Trump. Auto-related imports from Canada that comply with the trade deal would also avoid the 25% tariffs for a month, while the potash that U.S. farmers import from Canada would be tariffed at 10%, the same rate at which Trump wants to tariff Canadian energy products.
Canada's Prime Minister Justin Trudeau responded by stating that retaliatory tariffs against the United States will remain in place.
"What a mess President Trump has created," said Ontario Premier Doug Ford. "The only thing certain in these 30 days is uncertainty."
This was an expansion of his Wednesday announcement when he exempted auto imports from both countries for 30 days, and it also comes after a previous monthlong tariff reprieve for Canada and Mexico right before they were to take effect Feb. 4.
The back-and-forth on tariff policy is causing significant confusion and fear in the economy.
"Uncertainty is among the most toxic things for investors and business leaders when making decisions," said Mark Hamrick of Bankrate.com.
Major U.S. stock markets bounced off lows after Lutnick spoke, but only briefly. Significant declines already seen this week resumed within an hour. The S&P 500 stock index has fallen below where it was before Trump was elected. Consumer sentiment fell nearly 10% in February, and consumer spending in January saw the biggest drop in four years as Americans fear inflation amid tariff policies.
"The most prudent approach is to just maintain a level head," Hamrick said. "Don't act on fear, but act on thought, and take a more intermediate or long-term approach."
Trump said he still plans to impose "reciprocal" tariffs starting on April 2.
February saw a dramatic jump in layoffs, according to outplacement firm Challenger, Gray & Christmas, with over 172,000 announced, up 245% from January.
The firm attributes this surge largely to cuts in the federal workforce as Trump's Department of Government Efficiency slashes staffing.