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Trump Backs Off Mexico, Canada Tariffs After Market Blowback

Published

9 months ago

March 7, 2025

United States President, Donald Trump, on Thursday delayed some tariffs targeting Canada and Mexico, leading Ottawa to halt an upcoming wave of countermeasures — offering a reprieve to companies and consumers after blowback on financial markets.

Stock markets tumbled after Trump’s duties of up to 25 percent took effect Tuesday, as economists warned that blanket levies could weigh on US growth and raise inflation.

Trump signed orders Thursday to hit pause on the fresh tariffs for Canadian and Mexican imports covered by a North American trade agreement, though he dismissed suggestions that his decisions were linked to market turmoil.

The halt — which will last until April 2 — offers relief to automakers.

In the auto sector, parts cross North American borders multiple times during production.

Following talks with the “Big Three” US automakers — Stellantis, Ford and General Motors — Washington initially announced a one-month exemption on autos coming through the United States-Mexico-Canada Agreement (USMCA).

A White House official told reporters that about 62 percent of Canadian imports will still face the new tariffs, although much of these are energy products hit by a lower rate of 10 percent.

About half of Mexican imports come through the USMCA.

The latest moves make conditions “much more favorable for our American car manufacturers,” Trump said Thursday.

Shortly after Trump’s decision, Canadian Finance Minister Dominic LeBlanc wrote on X that his country “will not proceed with the second wave of tariffs on $125B of US products until April 2nd, while we continue to work for the removal of all tariffs.”

Trump said more tariffs would come on April 2, adding they will be “reciprocal in nature.” He had earlier vowed reciprocal levies to remedy practices Washington deems unfair.

At that point, Canadian and Mexican goods could still face levies.

The US president also said he would not modify broad tariffs for steel and aluminum imports, which are due to take effect next week.

US stock markets slumped again Thursday despite the new measures.

– ‘Tremendous progress’ –

Trump told reporters Thursday in the Oval Office that he had a “very good conversation” with Mexican President Claudia Sheinbaum.

He claimed “tremendous progress” on both illegal immigration and drugs coming into the United States — both reasons that Washington cited in imposing levies on Mexico, Canada and China.

His remarks stood in sharp contrast to simmering tensions with Canadian Prime Minister Justin Trudeau.

Trudeau said Thursday that Ottawa will remain in a trade war with Washington for “the foreseeable future” even if there are “breaks for certain sectors.”

“Our goal remains to get these tariffs, all tariffs removed,” Trudeau added.

Canada contributes less than one percent of fentanyl to the illicit US supply, according to Canadian and US government data.

China, meanwhile, has pushed back on US allegations of its role in the fentanyl supply chain, and instead touted its cooperation with Washington on the issue.

“The United States should not repay kindness with resentment, let alone impose tariffs without reason,” Chinese Foreign Minister Wang Yi said in Beijing.

“China-US economic and trade ties are mutual. If you choose to cooperate, you can achieve mutually beneficial and win-win results. If you use only pressure, China will firmly counter.”

– ‘Economic reality’ –

For Scott Lincicome, vice president of general economics at the Cato Institute, Trump’s easing of tariffs was “a recognition of economic reality” — that tariffs disrupt supply chains and the burden falls mainly on Americans.

“The market doesn’t like them and certainly doesn’t like the uncertainty surrounding them,” Lincicome told AFP.

Since taking office for his second term in January, Trump has made tariff threats on allies and adversaries alike.

US Treasury Secretary Scott Bessent said Thursday that he was not concerned Trump’s tariffs would be inflationary, adding that any impact on prices would likely be temporary.

Trump has referred to tariffs as a source of US government revenue and a way to remedy trade imbalances.

The US trade deficit surged to a new record in January, ballooning 34 percent to $131.4 billion as imports rose.

Analysts say the deficit was likely bolstered by gold imports, but that data suggests businesses were also trying to get ahead of tariffs.

AFP

Related Topics:#Trump Canada Mexico Tariff

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Headline

FULL LIST: US To Review Green Cards From 19 ‘Countries Of Concern’ After Washington Shooting

Published

1 hour ago

November 29, 2025

Editor

The Trump administration announced on Thursday that it will review the immigration status of all permanent residents, or “Green Card” holders, from Afghanistan and 18 other countries following the attack on National Guard troops in Washington, D.C.

U.S. officials identified the suspect in Wednesday’s shooting as a 29-year-old Afghan national who previously worked alongside American forces in Afghanistan.

The individual was granted asylum earlier this year, not permanent residency, according to AfghanEvac, an organisation that assists Afghans resettled in the United States after the Taliban takeover in 2021.

“I have directed a full-scale, rigorous reexamination of every Green Card for every alien from every country of concern,” said Joseph Edlow, director of U.S. Citizenship and Immigration Services (USCIS), on X.

The review follows a June executive order from President Trump classifying 19 countries as “of Identified Concern.”

The order banned entry for nearly all nationals from 12 countries, including Afghanistan. The full list of these countries is:

Afghanistan

Myanmar

Chad

Congo-Brazzaville

Equatorial Guinea

Eritrea

Haiti

Iran

Libya

Somalia

Sudan

Yemen

A partial travel ban applies to seven additional countries, though some temporary work visas remain allowed: Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan, and Venezuela.

Headline

Romanian Defence Minister Quits After Admitting Error In Academic Record

Published

2 hours ago

November 29, 2025

Editor

Romania’s defence minister resigned on Friday after saying he made a “mistake” on his CV about his university education, as controversy swirled over alleged lies on his resume.

Ionut Mosteanu – who has admitted to writing on his CV that he graduated from a university he never attended – said he did not want the row “to distract” the NATO member at a time when it and Europe are “under attack from Russia”.

Romania has repeatedly seen drone fragments fall on its soil since Russia invaded Ukraine in 2022, and reported a number of drone incursions.

On Tuesday, a drone crashed in eastern Romania, which borders Ukraine.

Romania has also accused Moscow of “hybrid attacks”, including meddling in presidential elections last year that were subsequently annulled.

“Today, I resigned from my position as minister of national defence,” Mosteanu said in a Facebook post, adding he wanted the country to be focused on its “difficult mission”.

“Romania and Europe are under attack from Russia. Our national security must be defended at all costs,” he added.

Mosteanu had come under pressure after a media investigation published on Thursday revealed that he wrote in a CV that he graduated from a university which he did not actually attend.

That same day he apologised for what he called “a mistake”.

“In a CV I quickly put together in 2016 using a template I found online, there is a mistake that I admit embarrasses me. I didn’t pay much attention to these details at the time,” he said on Facebook.

Mosteanu was appointed defence minister in June of this year, when a new pro-European government was formed after months of political turmoil.

Prime Minister Ilie Bolojan said in a press release that he would propose economy and tourism minister Radu Miruta take over the defence portfolio in the interim.

AFP

Headline

Russia Insists Ukraine Must Cede Land Or Face Continued Military Push

Published

1 day ago

November 27, 2025

Editor

Russian President Vladimir Putin said Thursday that he would end his Ukraine offensive if Kyiv withdrew from territory Moscow claims at its own — otherwise his army would take it by force.

The Russian army has been slowly but steadily grinding through eastern Ukraine in costly battles against outnumbered and outgunned Ukrainian forces.

Washington has meanwhile renewed its push to end the nearly four-year war, putting forward a surprise plan that it hopes to finalise through upcoming talks with Moscow and Kyiv.

“If Ukrainian forces leave the territories they hold, then we will stop combat operations,” Putin said during a visit to Kyrgyzstan. “If they don’t, then we will achieve it by military means.”

Russia controls around one-fifth of Ukraine’s territory. The issue of occupied land, which Kyiv has said it will never cede, is among the biggest stumbling blocks in the peace process.

Another important issue in the talks are Western security guarantees for Ukraine, which Kyiv says are needed to prevent Moscow from invading again in the future.

Washington’s original plan — drafted without input from Ukraine’s European allies — would have seen Kyiv withdraw from its eastern Donetsk region and the United States de facto recognise the Donetsk, Crimea and Lugansk regions as Russian.

The US pared back the original plan over the weekend following criticism from Kyiv and Europe, but has not yet released the new version.

Putin, who has seen the new plan, said it could be a negotiation starter.

“Overall, we agree that it could form the basis for future agreements,” he said of the latest draft, which the US is thought to have shortened to about 20 points.

US negotiator Steve Witkoff was expected in Moscow next week to discuss the revised document, Putin said.

US Army Secretary Dan Driscoll is meanwhile due to visit Kyiv later this week, Ukraine’s top presidential aide Andriy Yermak said.

– ‘Little can be done’ –

In his remarks Thursday, Putin repeated the claim that Russia had encircled the Ukrainian army in Pokrovsk and Myrnograd in Ukraine’s eastern Donetsk region — the most fiercely embattled area and a key target for Moscow’s forces.

“Krasnoarmeysk and Dimitrov are completely surrounded,” he said, using the Russian names for the cities.

Moscow was also advancing in Vovchansk and Siversk, as well as approaching the important logistic hub of Guliaipole, he added.

The Russian offensive “is practically impossible to hold back, so there is little that can be done about it”, Putin said.

Ukraine has denied Pokrovsk and Myrnograd are encircled, insisting its forces continue to hold the enemy along the front line.

Putin also questioned Ukrainian President Volodymyr Zelensky’s legitimacy and said signing any agreement with him would be legally “almost impossible” at the moment, a suggestion that has drawn groans from Kyiv and its allies.

According to data analysed by AFP from the American Institute for the Study of War (ISW), Russian forces have conquered an average of 467 square kilometres (180 square miles) each month in 2025 — a step up from 2024.

Moscow launched its full-scale invasion of Ukraine in February 2022, triggering the worst armed conflict in Europe since World War II.

The war has killed hundreds of thousands of people and forced millions to flee their homes.