US President Donald Trump said that he has postponed 25 percent tariffs on most goods from Mexico for a month after a conversation with that country's president.
Trump's announcement on Thursday comes after his Commerce Secretary, Howard Lutnick, said tariffs on both Canada and Mexico would “likely" be delayed.
This is the second one-month postponement Trump has announced since first unveiling the import taxes in early February.
The reprieve would apply to goods that are compliant with the trade agreement Trump negotiated with Canada and Mexico in his first term.
“We are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl,” Trump said on Truth Social.
TRT Global - The US commerce secretary says Trump is working something out with both countries, and a middle ground solution is likely to be the outcome
USMCA-compliant goods, services
Lutnick earlier said in a television interview that President Donald Trump will “likely” suspend 25 percent tariffs on Canada and Mexico for most products and services for a month, broadening an exemption that was granted on Wednesday only to autos.
In an interview on CNBC, Lutnick said the one-month delay in the import taxes “will likely cover all USMCA-compliant goods and services,” referring to the trade agreement Trump negotiated in his last term that replaced NAFTA. Lutnick estimated that more than half of what the US imports from those two countries would be eligible for the exemption.
Lutnick’s comments came as Trump’s on-again, off-again tariffs threats have roiled financial markets, lowered consumer confidence, and enveloped many businesses in an uncertain atmosphere that could delay hiring and investment.
Lutnick emphasised that reciprocal tariffs, in which the United States applies import taxes on countries that tariff US exports, will still be implemented April 2.
US markets bounced of their lows for the day shortly after Lutnick spoke.
TRT Global - US President Trump says there are no chances for these countries to avert tariffs that he says will be imposed from Tuesday, risking a hike in consumer prices in America.
Trade war
Also Thursday, Canadian Prime Minister Justin Trudeau indicated that he expects his country will be in a trade war with the United States for the foreseeable future.
Trudeau said the broader month-long pause “aligns with some of the conversations that we have been having with administration officials.”
The Canadian leader said the move by the Trump administration was a “promising sign,” but it also “means that the tariffs remain in place and therefore our response will remain in place.”
TRT Global - Trudeau says he will impose 25% tariffs on $107 billion worth of US goods if Washington follows through with proposed tariffs on Canadian goods.
Lutnick also said in the interview that if the two countries don't make enough progress limiting the shipment of fentanyl into the United States, the 25 percent tariffs could be re-applied in a month as well.
“Hopefully we will announce this today — USMCA-compliant goods will not have a tariff for the next month until April 2nd,” Lutnick said. “Hopefully Mexico and Canada will have done a good enough job on fentanyl that this part of the conversation will be off the table, and we’ll move just to the reciprocal tariff conversation.
But if they haven’t, this will stay on.”
