Washington: President Donald Trump said on Friday (AEDT) that he has postponed 25 per cent tariffs on most goods from Mexico, and some good from Canada, for a month amid widespread fears of the impact of a broader trade war.
Trump said in the Oval Office that he still plans to impose “reciprocal” tariffs starting April 2.
US President Donald Trump addresses Congress on Thursday.Credit: AP
“Most of the tariffs go on April the second,” Trump said before signing the orders. “And then we have some temporary ones and small ones, relatively small, although it’s a lot of money having to do with Mexico and Canada.”
Trump’s announcement comes after US Commerce Secretary Howard Lutnick said earlier that tariffs on both Canada and Mexico would “likely” be delayed.
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This is the second time Trump has postponed tariffs for a month since he first unveiled the import taxes in early February. The reprieve would apply to goods from Mexico that are compliant with the trade agreement Trump negotiated with Canada and Mexico in his first term.
“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” Trump said on Truth Social. “I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border.”
No details were released about what led to the temporary lifting of tariffs on Mexico.
Trump’s on-again, off-again tariffs threats have roiled financial markets, lowered consumer confidence, and enveloped many businesses in an uncertain atmosphere that could delay hiring and investment. Lutnick emphasised that reciprocal tariffs, in which the United States applies import taxes on countries that tariff US exports, will still be implemented April 2.
