President Donald Trump has taken a step back on his tariff plans for Mexico and Canada. Trump suspended the 25% tariffs he had imposed this week on most goods from Canada and Mexico, Reuters reported on Thursday.
However, it seems that the reprieve will be short as these exemptions will last only till April 2, after which Trump will be moving ahead with his plans for reciprocal tariffs against trade partners of the U.S., according to Trump’s remarks in his address to the joint session of Congress.
READ: Canada, China, Mexico, South Korea, India among 10 countries to be hit by Trump’s tariffs on aluminum, steel (February 11, 2025)
In response to the delay, Canada decided to not proceed with the planned second round of tariffs on C$125 billion ($87.4 billion) worth of U.S. goods until April 2, according to Finance Minister Dominic LeBlanc in a post on X.
Trump has implemented a 25% additional tariff on imports from Mexico and Canada in response to the ongoing national emergency caused by illegal immigration and the flow of deadly fentanyl and other drugs into the United States. This bold action aims to hold both countries accountable for failing to address the threat posed by drug trafficking organizations and illegal migration. While trade significantly impacts their economies, tariffs leverage America’s economic strength to ensure the safety and security of its borders.
These tariffs will remain in place until Mexico and Canada take decisive steps to halt the flow of illegal drugs and immigration, according to White House’s statement.
READ: The perils of Trump’s proposed tariff trade war (February 6, 2025)
Trump, who went ahead with imposing the tariffs on Tuesday, had been planning an exemption only for Mexico earlier on Thursday, but he went ahead and also added Canada to the amendment he signed later that day, thereby shaking up the North American trade pact.
Apart from Canada and Mexico, Trump’s tariffs have angered China as well. “No country can imagine that it can suppress China on one hand while developing good relations with China on the other hand,” Foreign Minister Wang Yi told a briefing in Beijing on Friday.