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Washington: US President Donald Trump (Trump’) has given relief to Mexico amid fears of trade war. He has postponed the decision to impose 25 percent tariff on goods coming from Mexico for a month. The new tariff rates will come into effect in April. At the same time, regarding Canada, he has said that the tariff problem has arisen because of Justin Trudeau and he is using it to win the election. Trump has made it clear that even though he is giving relief to Mexico, the tariff rate on goods imported from Canada will not be reduced.
Donald Trump wrote about Canada, “Believe it or not, despite his bad work done for Canada, I think Justin Trudeau is using the tariff problem, which he is the reason for, so that he can contest for the post of Prime Minister again. It is very funny to watch!”
Relief to Mexico
President Donald Trump said on Thursday that he has postponed the 25 percent tariff on most goods coming from Mexico for a month after talks with the Mexican President. Trump’s announcement came after his Commerce Secretary Howard Lutnick said that tariffs on both Canada and Mexico would “likely” be delayed. Trump had announced new tariff rates in February after taking over as US President in January. However, he has talked about a month’s delay in implementing new tariff rates for the second time.
Trump’s post
This exemption will apply to goods that are in line with the trade agreement Trump made with Canada and Mexico in his first term. Trump said on Truth Social, “We are working hard together at the border to stop illegal aliens from entering the United States and to stop fentanyl.”
Stock market impact
Trump’s repeated tariff threats have roiled financial markets, undermined consumer confidence and left many businesses mired in uncertainty that could delay hiring and investment. Lutnick emphasized that reciprocal tariffs, in which the United States imposes import taxes on countries that impose tariffs on American exports, will still be implemented on April 2. US markets bounced off their lows of the day shortly after Lutnick spoke.
Canada’s response
On Thursday, Canadian Prime Minister Justin Trudeau indicated he thinks his country will remain embroiled in a trade war with the US for the foreseeable future. Trudeau said the month-long broad pause is “consistent with some of our conversations with administration officials.” The Canadian leader said the Trump administration’s move is a “hopeful sign” but it also means “tariffs will remain in place and so will our response.”
