Amid growing trade war concerns, U.S. President Donald Trump signed an order on Thursday to delay new tariffs on imports from Canada and Mexico under a North American trade deal.
The decision to push back the 25% tariffs for over a month came after Trump held talks with Mexican President Claudia Sheinbaum and ongoing discussions between Canadian officials and the Trump administration.
- Trump’s Executive Order: The U.S. President signed an order postponing the 25% tariff on Mexican and Canadian imports. Goods traded under the United States-Mexico-Canada Agreement (USMCA) will be temporarily exempt from the new tariff.
- Background on USMCA: This trade agreement, negotiated during Trump’s first term, creates a free trade zone between the U.S., Mexico, and Canada.
- New Timeline: The tariff delay will remain in effect until April 2, offering temporary relief to industries that rely on cross-border trade.
- Auto Industry Impact: The automobile sector, which frequently moves parts between North American borders, was expected to face major setbacks due to the tariffs. The postponement provides breathing room for manufacturers.
- Stock Market Reaction: Following Trump’s announcement of a 25% tariff, stock markets saw a sharp decline, as reported by AFP.
But how will this tariff delay work? When will it take effect? Here are 10 key points to understand about Trump’s latest trade decision:
With this delay, industries and policymakers will closely watch further trade negotiations between the three nations.
