US President Donald Trump has delayed enforcing tariffs on goods from Canada and Mexico for a month, marking the second time this month he has pushed back on his trade policy proposals. The move is part of Trump’s ongoing efforts to negotiate new trade agreements with North American partners.
Experts say that the repeated delays and reversals are causing uncertainty in the global economy, which can lead to higher prices and diplomatic tensions between the US and its allies. “The continued flip-flopping has left the US economy with a sense of whiplash,” said Nick Vyas, founding director of the University of Southern California’s Randall R. Kendrick Global Supply Chain Institute.
Vyas believes that Trump’s trade policy is driven by his America First strategy, which aims to strengthen the US economy through protectionist measures. However, he warned that this approach can lead to alienating allies and creating uncertainty for businesses.
“Everyone has to understand that you’re on the long ride here with this jolt,” Vyas said. “The threat loses its power when you threaten and then continue to walk things back.”
Andrea Schneider, director of the Kukin Program for Conflict Resolution at the Cardozo School of Law, agrees that Trump’s trade policies are causing confusion among businesses and markets. “When you threaten and then continue to walk things back, obviously, the threat loses its power,” she said.
Schneider warned that this uncertainty can lead to social unrest as prices of everyday goods continue to rise. “The world is watching,” she said. “Markets are watching.”
The delay in enforcing tariffs on Canada and Mexico is seen as a game of tariff brinkmanship by some experts, who believe Trump is pushing the situation to the brink of disaster before backing down.
“This is very much about political theater,” said Gladys McCormick, Moskowitz endowed chair in Mexico-US relations at Syracuse University. “Trump is playing a risky game of negotiating with Canada and Mexico.”
McCormick believes that Trump’s tariffs are more likely an attempt to close the backdoor for Chinese products using Mexico as a transition point to avoid tariffs.
The delay has already led to retaliation from China and Canada, which have imposed tariffs on US goods. Mexico has also announced plans to retaliate on Sunday.
As the situation continues to unfold, experts warn that the long-term consequences of Trump’s trade policies remain uncertain.
Source: https://www.businessinsider.com/donald-trump-mexico-canada-tariffs-economic-uncertainty-2025-3