Trump Suspends Tariffs on Canada and Mexico
Trump Suspends Tariffs on Canada and Mexico
WASHINGTON, March 6 (Reuters) – U.S. President Donald Trump suspended the 25% tariffs he imposed earlier this week on most goods from Canada and Mexico. This latest move in his fluctuating trade policy has caused market volatility and raised concerns about inflation and economic growth.
The exemptions for Canada and Mexico, the two largest U.S. trading partners, will expire on April 2. Trump has threatened to impose reciprocal tariffs on all U.S. trading partners globally after this date. Initially, Trump mentioned an exemption only for Mexico, but later extended it to Canada as well. The three countries are part of the North American trade pact.
In response, Canada will delay a planned second wave of retaliatory tariffs on CAD 125 billion (USD 87.4 billion) worth of U.S. products until April 2, according to Finance Minister Dominic LeBlanc.
The amended White House order also excludes duties on potash, a critical fertilizer for U.S. farmers, but does not fully cover energy products, which are subject to a separate 10% levy.
Original story: Reuters