President Donald Trump said Thursday that he has postponed 25% tariffs on most goods from Mexico for a month after a conversation with that country's president.
Trump's announcement 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.
THIS IS A BREAKING NEWS UPDATE. AP's earlier story follows below.
U.S. Commerce Secretary Howard Lutnick said Thursday in a television interview that President Donald Trump will "likely" suspend 25% 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 U.S. 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 emphasized that reciprocal tariffs, in which the United States applies import taxes on countries that tariff U.S. exports, will still be implemented April 2.
U.S. markets bounced of their lows for the day shortly after Lutnick spoke.
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."
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% tariffs could be re-applied in a month as well.
Lutnick added that Trump is expected to speak with Mexico's president Claudia Sheinbaum later Thursday and could make an announcement afterwards.
Mexico and Canada have "done a good job offering us ever more work" to show that they are moving to combat shipments of fentanyl, a key demand Trump has made in return for permanently removing the 25% duties.
But Lutnick suggested that the number of U.S. fentanyl overdose deaths will be the key metric the administration will focus on when determining whether Canada and Mexico have done enough.
"We need to see fentanyl deaths decline, that is the metric I am focused on," he said.
Source Name : Economic Times