Donald Trump has backtracked on part of his trade war following chaos on Wall Street. The US President confirmed on Thursday Mexico has been given a one-month reprieve on goods including clothing and textiles and agricultural products.
Writing on his Truth Social platform, Mr Trump 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 US commerce secretary Howard Lutnick said it is “likely” the President will suspend 25% tariffs on both Canada and Mexico for most products and services for one-month. Mr Trump did not mention Canada.
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 Canada and Mexico would be eligible for exemption.
Carmakers were already given a one-month reprieve from the tariffs earlier this week.
Mr Trump is a big believer in tariffs and they are a crucial part of his economic plan, believing they will boost the US economy and create jobs.
US stocks nosedived earlier this week following Mr Trump’s announcement he would reimpose tariffs on Canada and Mexico and withdraw US aid to Ukraine.
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