As concerns about the economic effects of a wider trade war grow, US President Donald Trump delayed imposing 25% tariffs on several imports from Canada and Mexico, two of the country’s northern and southern neighbours, for a month.
The White House maintains that the goal of its tariffs is to stop illegal immigration into the US and fight fentanyl smuggling. However, Trump’s proposed taxes have severely damaged the long-standing North American trade alliance.
The 47th president of the United States said he is still dedicated to his plans to implement “reciprocal” tariffs beginning on April 2, even though Trump’s tariff proposals have also caused the stock market to collapse, worrying American consumers.
Canadian imports that adhere to the trade agreement, particularly automobiles and auto parts, will also be exempt from the 25% duties for a month. 10% tariffs will be applied on other Canadian goods, such as potash, which is imported by US farmers, and Canadian energy items.
Trump claims the action was a “short-term” strategy to avoid harming US automakers and has nothing to do with market movements, but he has not provided any details about his plans or what will happen when the tariffs return in a month.
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