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Trump Backs Off Mexico, Canada Tariffs After Market Blowback

Published

4 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

Iran-Israel War: ‘A Fire No One Can Control’, UN Warns

Published

7 hours ago

June 21, 2025

Editor

UN Secretary-General António Guterres has warned that the ongoing violent conflict between Iran and Israel is “a fire no one can control” and risks spiralling out of control.

Guterres also warned that the world stood on the edge of catastrophe as Israel’s military campaign inside Iran intensified and strikes on nuclear facilities threatened to trigger a catastrophe.

The regional fallout is expanding, with missiles from Yemen’s Houthi forces targeting Israel and the occupied Palestinian territory, while armed groups in Iraq are reportedly mobilising.

In an address to the UN Security Council on Friday, Guterres made an urgent plea for de-escalation, calling the spiralling confrontation a defining moment for the future of global security.

“We are not drifting toward crisis, we are racing toward it,” he said adding,“This is a moment that could shape the fate of nations”.

“The expansion of this conflict could ignite a fire no one can control,” he stressed, warning of widespread panic and destruction.

The Secretary-General’s remarks came amid a mounting civilian toll in both Israel and Iran, and as several nuclear sites in Iran have come under direct military assault.

Over 100 targets have reportedly been struck across Iran, including military and nuclear infrastructure such as the Natanz and Isfahan nuclear facilities and the Khondab heavy water reactor.

Iranian officials reported over 224 civilian deaths, with some estimates twice as high and more than 2,500 have been reportedly injured.

Major cities like Tehran have seen mass displacements, fuel shortages and widespread panic.

Iran has responded with its own barrage of missile strikes on Israel, hitting cities such as Tel Aviv, Haifa and Beersheba.

Critical civilian sites, including the Soroka Medical Center and the Weizmann research institute, have been damaged.

No fewer than 24 Israelis were confirmed dead, with more than 900 injured.

Guterres urged both parties to give diplomacy a chance.

He reiterated the need for full Iranian cooperation with the UN nuclear energy watchdog, the International Atomic Energy Agency

Headline

US Visa Adjudication Sparks Concerns Over Diplomatic Relations

Published

8 hours ago

June 21, 2025

Editor

The US Department of State has responded to questions regarding a proposed expansion of the travel ban to 36 countries, including 25 in Africa, following intense global debates and concerns, with many questioning its potential impact on diplomatic relations, travels, and economies.

According to the spokesperson for the Department of State, Ms Bruce, the proposal aims to protect US national security and public safety by ensuring that foreign travelers do not pose a threat to the country, saying ,

As laid out in Trump’s Executive Order 14161, ‘Protecting the United States from Foreign Terrorists and other National Security and Public Safety Threats’, the visa adjudication process has got to ensure that US-bound foreign travellers do not pose a threat to the national security and public safety of the United States.

She said that the Department of State assesses countries’ security capabilities, information sharing, and identity management practices to determine whether they can be trusted to provide reliable information for visa adjudication.

Countries that fail to meet certain security standards may face travel restrictions or entry bans. The goal is to ensure that US-bound foreign travelers do not pose a threat to national security and public safety, Bruce explained.

When asked about a deadline for countries to come up with an action plan, the spokesperson clarified that there is no immediate deadline, stating that countries will have a considerable amount of time to rectify any issues affecting the nature of the US trust in how they issue visas.

However, the proposed travel ban has sparked concerns about its potential impact on diplomatic relations and travels between the US and affected countries.

The African Union has expressed opposition to the ban, emphasising the need for balanced and evidence-based decision-making.

GLOBAL REACTIONS
Caribbean Leaders

Prime Minister Roosevelt Skerrit of Dominica expressed frustration over the lack of transparency surrounding the ban, emphasizing that his government is prepared to address any concerns raised by US officials.

Antigua and Barbuda, St. Kitts and Nevis, and other Caribbean nations have issued diplomatic notes to the US State Department, requesting official confirmation about their status on the list and clarification on how the policy will be enforced.

AFRICAN NATIONS

Some countries, like Chad, have already retaliated against previous travel bans by suspending visas for US citizens.

Regional leaders are concerned about the potential economic and diplomatic fallout, particularly for tourism-dependent economies.

US IMMIGRATION ADVOCATES

Critics argue that the ban disproportionately targets African and Caribbean nations, labeling it xenophobic and discriminatory. They warn that the expanded scope could face court challenges, particularly from those with existing US ties.

ECONOMIC CONCERNS
Tourism Impact

The Caribbean is one of the most tourism-dependent regions in the world, and any major restriction will have devastating economic consequences, according to a regional economist based in Bridgetown, Barbados.

CITIZENSHIP BY INVESTMENT PROGRAMS

The US has raised concerns about the security risks associated with these programs, which allow foreign nationals to acquire second citizenships in exchange for financial investments. Antigua and Barbuda’s government has defended its screening process, stating that all applications are rigorously vetted by recognized international agencies.

DIPLOMATIC FALLOUT
Strained Relations

The proposed ban has also raised concerns about strained diplomatic ties, especially for countries reliant on American tourism or investment

DIPLOMATIC EFFORTS

Caribbean officials are mobilising for diplomatic action, with the 15-member Caribbean Community (CARICOM) convening high-level talks with US officials to press for more transparency on the proposed travel ban.
(VANGUARD)

Headline

Trouble Looms As Trump Gives Iran Two Weeks To Avoid US Airstrikes

Published

18 hours ago

June 21, 2025

Editor

President Donald Trump said Friday that Iran had a “maximum” of two weeks to avoid possible US air strikes, indicating he could make a decision before the fortnight deadline he set a day earlier.

Trump added that he was not inclined to stop Israel attacking Iran because it was “winning,” and was dismissive of European efforts to mediate an end to the conflict.

“I’m giving them a period of time, and I would say two weeks would be the maximum,” Trump told reporters when asked if he could decide to strike Iran before that.

He added that the aim was to “see whether or not people come to their senses.”

Trump had said in a statement on Thursday that he would “make my decision whether or not to go within the next two weeks” because there was a “substantial chance of negotiations” with Iran.

Those comments had been widely seen as opening a two-week window for negotiations to end the war between Israel and Iran, with the European powers rushing to talks with Tehran.

But his latest remarks indicated Trump could still make his decision before that if he feels that there has been no progress towards dismantling Iran’s nuclear program.

Trump meanwhile dismissed talks that European powers Britain, France, Germany and the EU had with Iran’s foreign minister in Geneva on Friday.

Europe ‘didn’t help’

“They didn’t help,” he said as he arrived in Morristown, New Jersey, ahead of a fundraising dinner at his nearby golf club.

“Iran doesn’t want to speak to Europe. They want to speak to us. Europe is not going to be able to help in this.”

Iranian Foreign Minister Abbas Araghchi said after the talks in Geneva that Tehran would not resume negotiations with the United States until Israel stopped its attacks.

But Trump was reluctant.

“It’s very hard to make that request right now,” Trump said.

“If somebody’s winning, it’s a little bit harder to do than if somebody’s losing, but we’re ready, willing and able, and we’ve been speaking to Iran, and we’ll see what happens.”

Trump meanwhile doubled down on his claims that Iran is weeks away from being able to produce a nuclear bomb, despite divisions in his own administration about the intelligence behind his assessment.

Tulsi Gabbard, Trump’s director of national intelligence, said in a report in March that Iran was not close to having enough enriched uranium for a nuclear weapon.

“She’s wrong,” Trump said of Gabbard, a longtime opponent of US foreign intervention whom Trump tapped to coordinate the sprawling US spy community.

Iran says its nuclear program is for peaceful purposes.

AFP