New Delhi: Donald Trump reversed his order less than 72 hours after implementing tariffs. Trump suspended tariffs on Canada for month-long tariff relief for Mexico. Months earlier, necessary actions from Canada and Mexico had left the US President with the complication of temporarily freezing the proposed tariffs on those countries for 30 days after he got rolling on the big platter of meat that is border security and drug control within the first 10 days of his presidency.
This move’s relief is timely, given the worries over a North American trade war that would have damaged growth, inflated costs, and strained trade relations.
Donald Trump said on social media, “I am very happy with this first decision. Tariffs that were announced last Saturday would be suspended for 30 days to finalise an economic deal with Canada. All that is SO essential, justice for all.”
The trade war between the US and Mexico is, at least for now, off the table. The countries were given time to address the problems of drug smuggling and unlawful migration. The 10% tariffs placed on imports coming from China are still in effect, however. Trump is likely to be talking about this with Chinese President Xi Jinping soon.
The immediate threat of a trade war may have been avoided, but uncertainty over the future remains. Trump could put tariffs back in place and is also getting ready to put tariffs on products imported from the EU. On Saturday, Trump ordered a 25% tax on goods imported from Mexico and Canada, as well as a different 10% duty applied to oil, natural gas, and electricity imported from Canada.