President Donald Trump has delayed the imposition of tariffs on imports coming from Canada following stock market turmoil over a potential trade war.
Earlier today, Trump signed an executive order to life the 25 per cent tax for all goods compliant under the United States-Mexico-Canada-Arrangement (USMCA), CNBC reports.
However, all imports not compliant with USMCA will still see 25 per cent tariffs, as well as 10 per cent levies on energy.
White Officials shared that roughly 50 per cent of Mexican imports, 62 per cent of Canadian imports are not compliant with the trade arrangement.
As such, the price of goods for many American consumers are expected to to increase in the interim period, according to economists.
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The Trump administration has cited tariffs, which are taxes on goods coming into the country, as being essential to the US economic agenda.
However, the President appears to be pushing back the deadline for when tariffs will be launched after a call with Mexican President Claudia Sheinbaum, with the levies on Mexico also being delayed until April 2.
Earlier today, the US President and Prime Minister Justin Trudeau got into a heated argument during a phone call about the likely trade war, The Wall Street Journal reports.
Trump has cited his desire to make Canada the 51st state and Trudeau has accused the US Government of using tariffs to tank his country’s economy to achieve that aim.
Starting next week, the Canadian province Ontario will begin charging 25 per cent more for electricity shipped to 1.5 million Americans.
Ontario Premier Doug Ford announced the surcharge earlier today in response to US tariffs hitting Canadian imports this week.
Prior to this announcement, Ford reached out to governors of the states affected, including Minnesota, New York, and Michigan.
He said: “You touch the stove once, you get burned, you don’t touch that stove again. We’re going to make sure that we follow through with what we said we were going to do.”
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Trump had pledged to make tariffs central for his agendaREUTERSWolfe Research analyst Tobin Marcus has accused the Trump administration of achieving nothing for the US economy over its fluctuating tariff policy.
Marcus explained: “After three consecutive days of major tariff expansion or retraction, we have to ask: What was all this for?
“In Trump’s statement announcing the delay, he didn’t point to any specific further concessions from Sheinbaum on either fentanyl or trade, even though there are some policy shifts he might reasonably have hoped to achieve, as we noted on Monday.
“Sheinbaum’s midday post also did not point to any specific policy commitments beyond general continued cooperation on migration, fentanyl, and guns.”