WASHINGTON (AP) — President Donald Trump mentioned Thursday that he has postponed 25% tariffs on most items from Mexico for a month amid widespread fears of the affect of a broader trade war.
Trump’s announcement comes after his Commerce Secretary, Howard Lutnick, mentioned earlier Thursday that tariffs on each Canada and Mexico would “probably” be delayed. No change was introduced relating to the brand new tariffs imposed on Canada.
That is the second time Trump has postponed tariffs for a month since he first unveiled the import taxes in early February. The reprieve would apply to items from Mexico which are compliant with the commerce settlement Trump negotiated with Canada and Mexico in his first time period.
“After talking with President Claudia Sheinbaum of Mexico, I’ve agreed that Mexico is not going to be required to pay Tariffs on something that falls underneath the USMCA Settlement,” Trump mentioned on Truth Social. “I did this as an lodging, and out of respect for, President Sheinbaum. Our relationship has been an excellent one, and we’re working laborious, collectively, on the Border.”
No particulars have been launched Thursday about what led to the short-term lifting of tariffs on Mexico.
Trump’s on-again, off-again tariffs threats have roiled monetary markets, lowered consumer confidence, and enveloped many companies in an uncertain atmosphere that would delay hiring and funding. Lutnick emphasised that reciprocal tariffs, during which america applies import taxes on nations that tariff U.S. exports, will nonetheless be implemented April 2.
Main U.S. inventory markets bounced off lows after Lutnick spoke, however solely briefly. Vital declines already seen this week resumed inside an hour. The inventory market has fallen steadily this week in response to Trump’s tariff insurance policies and the S&P 500 inventory index is now beneath the place it was earlier than Trump was elected.
Sheinbaum mentioned she and Trump “had a wonderful and respectful name during which we agreed that our work and collaboration have yielded unprecedented outcomes,” on a submit on the social media platform X, previously Twitter.
Mexico has cracked down on cartels, despatched troops to the U.S. border and delivered 29 high cartel bosses lengthy chased by American authorities to the Trump administration in a span of weeks.
Canadian Prime Minister Justin Trudeau on Thursday indicated that he expects his nation can be in a trade war with the United States for the foreseeable future.
Trudeau mentioned the broader month-long pause “aligns with a number of the conversations that we have now been having with administration officers.”
The Canadian chief mentioned the transfer by the Trump administration was a “promising signal,” however it additionally “signifies that the tariffs stay in place and subsequently our response will stay in place.”
Lutnick mentioned each Canada and Mexico “have completed job providing us ever extra work” on stopping fentanyl on the border, a key demand that Trump has made in return for completely lifting the tariffs. Trump has additionally supplied many other reasons for his tariffs, together with elevating income for the federal authorities, returning manufacturing to america, and lowering the commerce surpluses each nations have with the U.S.
Related Press writers Josh Boak and Megan Janetsky contributed to this report. Janetsky reported from Mexico Metropolis.
