US President Donald Trump has suspended tariffs of 25% on most goods from Canada and Mexico, the latest twist in a fluctuating trade policy that has whipsawed markets. The exemptions are set to expire on April 2, when Trump had threatened to impose a global regime of reciprocal tariffs on all US trading partners.
The move applies to both countries, which are members of the North American trade pact, and excludes potash, a critical fertilizer for US farmers. However, it does not fully cover energy products, on which Trump has imposed a separate levy of 10%.
Canada will delay a planned second wave of retaliatory tariffs on C$125 billion ($87.4 billion) of US products until April 2, following the White House’s amended order.
China has vowed to “resolutely counter” US pressure over fentanyl, with Foreign Minister Wang Yi stating that no country can suppress China while developing good relations with it.
Trump had previously imposed tariffs on imports from Canada and Mexico after declaring a national emergency due to fentanyl overdoses. The move also affects Chinese imports, with Trump doubling the 10% levy enforced since February 4.
The US stock markets resumed their recent sell-off on Thursday, citing concerns over the back-and-forth developments on tariffs. Economists warn that the levies may rekindle inflation and stall growth across all three economies.
Source: https://www.reuters.com/business/tariff-reprieve-likely-be-extended-all-usmca-compliant-goods-lutnick-says-2025-03-06