US President Donald Trump said that he has postponed 25% tariffs on most goods from Mexico for a month after a conversation with the country’s leader.
Mr Trump’s announcement comes after his commerce secretary, Howard Lutnick, said tariffs on both Canada and Mexico would “likely” be delayed.
This is the second one-month postponement Mr Trump has announced since first unveiling the import taxes in early February.
The reprieve would apply to goods that are compliant with the trade agreement Mr Trump negotiated with Canada and Mexico in his first term.
“We are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl,” Mr Trump posted on Truth Social.
US commerce secretary Howard Lutnick (Ben Curtis/AP)
Mr Trump’s on-again, off-again tariff threats have impacted financial markets, lowered consumer confidence and enveloped many businesses in an uncertain atmosphere that could delay hiring and investment.
Mr Lutnick emphasised that reciprocal tariffs, in which the United States applies import taxes on countries that tariff US exports, will still be implemented on April 2.
US markets bounced off their lows for the day shortly after Mr Lutnick spoke.
Also on Thursday, Canadian Prime Minister Justin Trudeau indicated that he expects his country will be in a trade war with the United States for the foreseeable future.
Mr Trudeau said the broader month-long pause “aligns with some of the conversations that we have been having with administration officials”.
The Canadian leader said the move by the Trump administration was a “promising sign”, but it also “means that the tariffs remain in place and therefore our response will remain in place”.