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President Donald Trump of the United States on Wednesday raised hopes for another month-long pause on steep new tariffs on imports from Mexico and Canada.
This was as he said they could take effect on April 2, and floated a 25% reciprocal tariff on European cars and other goods.
Trump’s previous March 4 deadline for the 25% tariffs on Mexican and Canadian goods, however, remained in effect as of this moment, pending his review of Mexican and Canadian actions to secure their borders and halt the flow of migrants and the opioid fentanyl into the US
The president sowed confusion during his first cabinet meeting on Wednesday, when he was asked about the timing for the start of the duties for Canada and Mexico and replied that it would be April 2.
“I have to tell you that, you know, on April 2, I was going to do it on April 1. But I’m a little bit superstitious, I made it April 2, the tariffs go on. Not all of them but a lot of them,” Trump said.
His comments triggered jumps in the value of the Canadian dollar and Mexican peso versus the greenback.
Canadian Innovation Minister Francois-Philippe Champagne had said that his country would wait for signed executive orders from Trump before reacting.
“Our mission is still to avoid the tariffs, extend the suspension if we need to. We are prepared – there will be a targeted, strategic but a firm response if Trump imposes tariffs,” Champagne said.
Meanwhile, Mexico’s Economy Ministry has not yet commented on Trump’s remarks, but said Economy Minister Marcelo Ebrard will meet on Thursday with newly confirmed US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick on Friday.
Lutnick told the cabinet meeting that the fentanyl-related actions were paused for 30 days but referred to overall tariffs on April 2 without specifying whether the March 4 deadline remained in effect.
“So the big transaction is April 2, but the fentanyl-related things, we’re working hard on the border. At the end of that 30 days, they have to prove to the president that they’ve satisfied him in that regard. If they have, he’ll give them a pause, or he won’t,” Lutnick said.
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