President Donald Trump decided to suspend the 25% tariffs imposed earlier in the week on most goods from Canada and Mexico, creating additional uncertainty around the fluctuating trade policy and its impact on financial markets, inflation, and economic growth.
The exemptions for the two leading U.S. trading partners are set to expire on April 2, coinciding with Trump’s warning of a potential global regime of reciprocal tariffs on all U.S. trading partners.
Canada has also adjusted its retaliatory tariffs schedule, postponing the second wave until the said date, while specific products like potash are excluded from the amended White House order.
Although energy products are not fully covered, Commerce Secretary Howard Lutnick has emphasized a potential shift to reciprocal tariff discussions if unresolved issues, like fentanyl concerns, persist beyond April 2.
Amidst these developments, Trump has also confirmed the implementation of 25% tariffs on steel and aluminum imports by March 12, impacting key exporters like Canada and Mexico.
