Trump backs down and postpones Canada and Mexico tariffs for a month!
US President Donald Trump has extended 25% tariffs on various imports from northern and southern neighbours Canada and Mexico for a month, amid fears of economic fallout from a wider trade war.
The White House insists its tariffs are aimed at combating fentanyl smuggling and curbing illegal migration into the United States. However, Trump's proposed taxes have left a gaping wound in the decades-old North American trading partnership.
Trump's tariff plans have also sent the stock market plummeting, alarming American consumers, but the 47th US president says he remains committed to his plans to impose "reciprocal" tariffs starting April 2.
Imports coming to the US from Mexico will be exempt from 25% tariffs for one month if they comply with the 2020 USMCA (United States-Mexico-Canada Agreement) trade pact, according to orders signed by Trump.
Imports from Canada, particularly cars and auto parts that comply with the trade deal, will also avoid 25% tariffs for one month. Other Canadian products, including potash imported by U.S. farmers and Canadian energy products, will be subject to a 10% tariff.
Trump says the move was a "short-term" maneuver to avoid hurting American car companies and has nothing to do with market reactions, but he offered no explanation for what will happen next or what his plans are when the tariffs take effect in a month.
"No, it has nothing to do with the market. I'm not even looking at the market, because long term, the United States is going to be very strong with what's going on here. Now, these are countries and companies, foreign companies that have ripped us off. And no president did anything about it until I came in. And then I did a lot about it," Trump said.
According to a White House official, about 62% of Canadian imports are still likely to face new tariffs because they are not USMCA-compliant. The figure stands near the 50% mark for Mexican products.
Canada responds
Canada's initial retaliatory tariffs against the U.S. will remain in place despite Trump's postponement of some tariffs, according to two senior Canadian officials who spoke to The Associated Press on condition of anonymity.
Canada's initial retaliatory tariffs of 30 billion Canadian dollars (19.4 billion euros) applied to items such as American orange juice, peanut butter, coffee, appliances, shoes, cosmetics, motorcycles and some pulp and paper products will remain in effect.
A second wave of Canadian tariffs on another 125 billion Canadian dollars (81 billion euros) worth of US products was suspended after Trump signed an executive order to suspend some duties, according to Canadian Finance Minister Dominic LeBlanc.
The second set of tariffs was set to be extended within three weeks and would cover products such as electric vehicles, fruits and vegetables, milk, beef, pork, electronics, steel and trucks.
Ontario Premier Doug Ford, leader of Canada's most populous province, announced Thursday that starting Monday, Ontario will charge 25% more for electricity delivered to about 1.5 million Americans in response to Trump's tariff plans. Ontario currently provides power to some homes in Minnesota, New York and Michigan.
"The only thing that is certain today is more uncertainty. A pause on some tariffs means nothing. Until President Trump permanently removes the threat of tariffs, we will be relentless," Ford said in a post on X.
China responds to Trump's tariffs
Chinese Foreign Minister Wang Yi said Beijing would continue to retaliate against the United States' "arbitrary tariffs," after he accused Washington of "meeting good with evil" at a press conference on Friday.
Yi says China's efforts to help the U.S. curb its fentanyl crisis have been met with punitive tariffs, which are straining ties between the countries. " No country should fantasize that it can suppress China and maintain a good relationship with China at the same time," Wang said. "Such double-faced acts are not good for the stability of bilateral relations or for building mutual trust . "
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