On Wednesday, U.S. President Donald Trump suggested a potential extension for delaying the implementation of significant new tariffs on imports from Mexico and Canada until April 2, while considering a 25% “reciprocal” tariff on European vehicles and goods.
Meanwhile, a White House aide indicated that the original March 4 deadline for the Canada and Mexico tariffs remains valid, depending on whether both nations make strides in border security and curb the influx of migrants and fentanyl into the United States.
During a cabinet meeting, Trump caused confusion regarding the timing of the tariffs for the North American countries, stating “I have to tell you that, you know, on April 2, I was going to do it on April 1,” Trump said. “But I’m a little bit superstitious, I made it April 2, the tariffs go on. Not all of them but a lot of them.”
His remarks influenced the Canadian dollar and Mexican peso to rise against the U.S. dollar.
On the other hand, Canadian Innovation Minister Francois-Philippe Champagne expressed Canada’s intention to await formal executive orders from Trump before determining a course of action. He emphasized the focus remains on avoiding the tariffs and possibly extending their suspension, while preparing a targeted and strong response should Trump proceed with the tariffs.
For Mexico, the country’s Economy Ministry refrained from commenting on Trump’s statements. However, they announced that Economy Minister Marcelo Ebrard is scheduled for discussions on Thursday with the recently confirmed U.S. Trade Representative Jamieson Greer, followed by a meeting with Commerce Secretary Howard Lutnick on Friday.
Lutnick indicated that the review period for fentanyl-related measures is paused for 30 days, with significant decisions expected by April 2.
As for the European Union, Trump aims for reciprocal tariffs, aligning with the duties and limitations other countries impose on U.S. imports. His trade advisors perceive Europe’s value-added taxes as a de facto tariff.
When questioned about the proposed tariff rate on EU goods, Trump hinted at a forthcoming announcement of a 25% rate, notably affecting cars. He criticized the EU for not accepting U.S. cars and agricultural products, which he views as unfair treatment.
In response, a European Commission spokesperson asserted that the EU would respond decisively against unwarranted trade barriers, defending principles of free and fair trade. The spokesperson further emphasized the EU’s stance as the world’s largest free market, benefiting global commerce, including that of the U.S.
Meanwhile, European Parliament President Roberta Metsola planned to meet with U.S. legislators in Washington on Wednesday. However, her agenda did not include meetings with officials from the Trump administration.
