Key points
- Trump dismisses recommendations that his decisions are linked to market turmoil
- Decision leading Ottawa to halt an upcoming wave of countermeasures
- US stock markets slumped again Thursday despite the new measures
WASHINGTON: US President Donald Trump on Thursday delayed some tariffs targeting Mexico and Canada, leading Ottawa to halt an upcoming wave of countermeasures — offering a reprieve to firms and consumers after blowback on financial markets.
According to AFP, stock markets tumbled following Trump’s duties of up to 25 per cent took effect Tuesday, as experts warned that blanket levies could weigh on US growth and increase inflation.
Trump signed orders Thursday to hit pause on the fresh tariffs for Canadian and Mexican imports covered by a North American trade agreement, though he dismissed recommendations that his decisions were linked to market turmoil.
Market turmoil
The halt — which will last until April 2 — offers relief to automakers, AFP reported.
In the auto sector, parts cross North American borders multiple times during production.
After talks with the “Big Three” US automakers — Stellantis, Ford and General Motors – the US initially announced a one-month exemption on autos coming through the United States-Mexico-Canada Agreement (USMCA).
A White House official told reporters that about 62 per cent of Canadian imports will still face the new tariffs, although much of these are energy products hit by a lower rate of 10 percent, according to Western media reports. About half of Mexican imports come through the USMCA.
“Reciprocal in nature”
Shortly after Trump’s decision, Canadian Finance Minister Dominic LeBlanc wrote on X that his country “will not proceed with the second wave of tariffs on $125B of US products until April 2nd, while we continue to work for the removal of all tariffs.”
Trump said more tariffs would come on April 2, adding they will be “reciprocal in nature.” He had earlier vowed reciprocal levies to remedy practices Washington deems unfair.
At that point, Canadian and Mexican goods could still face levies.
The US president also said he would not modify broad tariffs for steel and aluminum imports, which are due to take effect next week, AFP reported. US stock markets slumped again Thursday despite the new measures.
