Thu, 06 Mar 2025

Thu, 06 Mar 2025 Trump suspends Mexico and Canada tariffs

Trump said he was granting exemptions to tariffs on goods that come under a previous trade pact until 2 April.

* US President Donald Trump has signed orders exempting certain goods from his new tariffs on Canada and Mexico.
* The exemptions apply to goods shipped under the US-Mexico-Canada Agreement (USMCA) and will remain in place until April 2.
* About 50% of US imports from Mexico and 62% from Canada may still face tariffs, but this could change as firms adjust their practices.
* Trump dismissed suggestions that he was rolling back the measures due to market concerns, saying "nothing to do with the market".
* The exemptions will help carmakers and parts suppliers, and also reduce tariffs on potash (a key ingredient for fertiliser) from 25% to 10%.
* Mexican President Claudia Sheinbaum thanked Trump for the move and said the two countries would work together on issues like fentanyl trafficking.
* Canadian Prime Minister Justin Trudeau said a trade war between the US and Canada was likely, but expressed hope that tariffs could be removed in the future.
* The US stock market indexes were lower on Thursday afternoon, with the S&P 500 ending down nearly 1.8%.
* Trump's policies have already had an impact on the economy, with imports spiking in January due to tariff fears and a 34% increase in the trade deficit.
* Some economists warn that tariffs could lead to prices rising for consumers in the US, while others fear severe economic downturns in Mexico and Canada.
  >>