Donald Trump announced a major reversal on his recent tariffs on goods and services from Mexico and Canada.
On Tuesday, the U.S. imposed 25 percent tariffs on all goods imported from Mexico and Canada rocketing the country into a trade war.
But just days later, Trump reversed his economic slap down saying that goods that are compliant with the North American free trade agreement with not be tariffed until April 2.
The president said earlier Thursday that he is enforcing a one-month pause out of ‘respect’ for President Sheinbaum because the country has agreed to his conditions to halt the flow of fentanyl through the southern border.
Canada will also be getting a similar extension, Trump announced to reporters during a gaggle in the Oval Office hours later.
‘After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,’ he said on Truth Social.
The agreement will last until April 2 and was done ‘out of respect for’ Sheinbaum.
‘Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl. Thank you to President Sheinbaum for your hard work and cooperation!’
Meanwhile, he continued to dig into Canada‘s Justin Trudeau.
Donald Trump announced a major reversal on his tariffs on Mexico
Trump is enforcing a one-month pause out of ‘respect’ for President Sheinbaum
‘Believe it or not, despite the terrible job he’s done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister. So much fun to watch!’ he posted on Truth Social.
But his Commerce Secretary Howard Lutnick teased on CNBC that the president is also mulling a similar exemption for Canada.
Trump also announced on Wednesday that he is rolling back tariffs for auto imports from the neighboring countries.
‘We spoke with the Big Three auto dealers. We are going to give a one-month exemption on any autos coming through USMCA. Reciprocal tariffs will still go into effect on April 2,’ press secretary Karoline Leavitt said during the White House press briefing Wednesday.
That came one day after Trump met with the ‘Big Three’ automakers – General Motors, Ford and Stellantis.
Commerce Secretary Howard Lutnick appeared on Bloomberg just over 24 hours later where he said the president is considering easing some tariffs.
‘There are going to be tariffs, let’s be clear, but what he’s thinking about is which sections of the market that can maybe, maybe he’ll consider giving them relief,’ Lutnick said.
Trump’s press secretary Karoline Leavitt
Meanwhile, Trump continued to dig into Canada ‘s Justin Trudeau
The commerce secretary said that could go until they get to April 2.
The Trump administration appeared ready to blink first as the markets took a massive tumble this week, and Canada and China announced reciprocal tariffs.
But the trade war between the U.S. and major trade partners is far from over.
‘I don’t want anybody to forget, April 2 is the day that we announce our reciprocal tariffs around the world,’ Lutnick noted.
