US suspends tariffs on Mexico and Canada after backlash

(CLO) US President Donald Trump on Thursday (March 6) announced a temporary suspension of high tariffs targeting Canada and Mexico after a backlash in financial markets.

Stock markets plunged after sweeping tariffs of up to 25% on two of America's neighbors took effect on Tuesday, while economists warned that the sweeping tariffs could hurt US growth and fuel inflation.

Mr Trump signed an order on Thursday to delay new tariffs on imports from Canada and Mexico, although he dismissed suggestions that his decision was related to the market turmoil.

President Donald Trump imposed a 25% tariff on steel and aluminum imported into the US. Photo: GLP

The delay — until April 2 — comes a day after the White House announced similar relief for automakers. After talks with the “Big Three” U.S. automakers Stellantis, Ford and General Motors, Trump decided to waive tariffs for a month on imported cars under the United States-Mexico-Canada Agreement (USMCA).

About 62% of Canadian imports will still be subject to the new tariffs, with energy imports facing a lower 10% tariff, a White House official told reporters.

The official added that major moves would be announced on April 2, the day the administration has said it will impose “reciprocal tariffs” on trade with nearly every country in the world . At that time, Canadian and Mexican goods could still be subject to tariffs.

The US president also said he would not amend the general tariffs on steel and aluminum, which are scheduled to take effect next week.

Hoang Hai (according to WH, Reuters, NBC)

Source: https://www.congluan.vn/my-tam-hoan-thue-quan-voi-mexico-va-canada-sau-phan-ung-du-doi-post337447.html