US President Donald Trump has delayed the imposition of 25 percent tariffs on various imports from Mexico and some imports from Canada for a month amid widespread concerns about the economic impact of a deeper trade war.
The White House says its tariffs are aimed at stopping fentanyl smuggling, but Mr Trump's proposed taxes have created serious problems for a long-standing North American trading partnership, and Canada has seen an urgent need to take strong retaliatory action.
Trump's tariff plans have also sent the stock market lower and raised concerns among American consumers.
In addition to his fentanyl claims, Mr. Trump has argued that the tariff issue can be resolved by eliminating the trade deficit, and in an Oval Office speech he said he still intends to impose “reciprocal” tariffs starting April 2.
“The majority of the tariffs will go into effect on April 2,” Mr. Trump said before signing the orders. “We have some temporary and relatively small, though significant, amounts of tariffs related to Mexico and Canada at this point.”
Mr Trump said he had no plans to extend the 25 percent duty exemption on cars for another month.
Under orders signed by Mr Trump, imports from Mexico that comply with the 2020 USMCA trade agreement will be exempt from 25 percent tariffs for a month.
Imports of auto-related goods from Canada will also not be subject to 25 per cent tariffs for a month, while potash that American farmers import from Canada will be subject to 10 per cent tariffs – the same rate at which Mr Trump plans to impose tariffs on Canadian energy products.
About 62 percent of imports from Canada will likely still be subject to the new tariffs because they are not USMCA compliant, a White House official said. Half of Mexican imports that are not USCMA compliant will also be taxed under orders signed by Mr. Trump, the official said.
Mexican President Claudia Sheinbaum had planned to announce any retaliatory measures on Sunday, but Mr Trump praised her for progress in combating illegal immigration and drug smuggling, prompting a second suspension of tariffs that were originally set to take effect in February.
“I did this as a compromise and out of respect for President Sheinbaum,” Mr. Trump said on the Truth Social platform. “Our relationship has been very good, and we are working hard together on the border.”
Trump's repeated threats of tariffs have weighed on financial markets, dented consumer confidence and created uncertainty for many businesses, which could lead to delays in hiring and investment.
Major U.S. stock markets briefly rebounded from their lows after Commerce Secretary Howard Lutnick predicted a month-long pause on CNBC on Thursday. The big drops that had already been seen this week resumed within an hour. The S&P 500 index fell below the level it was at before Mr. Trump was elected.
Sourse: breakingnews.ie
