Donald Trump has launched a trade war against several countries (Image: GETTY)
has backtracked on part of his trade war following chaos on Wall Street. The US President confirmed on Thursday has been given a one-month reprieve from new tariffs on goods including clothing and textiles and agricultural products.
, said the delay is until April 2 and that he “did this as an accommodation, and out of respect for, President Sheinbaum”. The announcement comes after the commerce secretary Howard Lutnick said it is “likely” the President will suspend 25% tariffs on both and for most products and services for one-month. did not mention .
Canada’s Justin Trudeau expects there will be a Canada-US trade war for the foreseeable future (Image: Getty)
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Mr Lutnick told CNBC the delay in the import taxes “will likely cover all USMCA [US-Mexico-Canada Agreement]-compliant goods and services”, estimating more than half of what the US imports from and would be eligible for exemption.
Carmakers were already given a one-month reprieve from the tariffs earlier this week.
Mr Lutnick also said if the two countries don’t make enough progress limiting the shipment of fentanyl into the , the 25% tariffs could be re-applied in a month as well.
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The President said Washington and Mexico are “working hard, together” to stop fentanyl from entering the US.
Recipriocal tariffs, in which the applies import taxes on countries that tariff American exports, are still be expected to be implemented on April 2.
is a big believer in tariffs and they are a crucial part of his economic plan, believing they will boost the economy and create jobs.
His on-again, off-again tariffs threats have roiled financial markets and lowered consumer confidence.
Stocks racked up more losses on Wall Street Tuesday as the trade war between the US and its key trading partners escalated (Image: Getty)
following ’s announcement he would reimpose tariffs on Canada and Mexico and withdraw US aid to .
Stocks racked up more losses on Wall Street Tuesday as the trade war between the and its key trading partners escalated, wiping out all the gains since Election Day for the S&P 500 index.
Canadian Prime Minister Justin Trudea and on Thursday said he expects Canada and the US to be in a trade war for the foreseeable future.e
He said the month-long pause “aligns with some of the conversations that we have been having with administration officials.”
He described the move as a ” promising sign” but added it also “means that the tariffs remain in place and therefore our response will remain in place”.
The has also imposed 20% tariffs on all imports from .
‘s commerce minister said on Thursday there are “no winners in a trade war”.