The US has finally been forced to temporarily retreat from imposing an additional 25% tariff on Canada and Mexico, with the implementation of the decision postponed for at least 30 days.
According to details, US President Donald Trump’s decision to delay the enforcement of this measure came after a telephonic conversation with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum.
However, the US decision to impose an additional 10% tariff on China remains in place, which could significantly impact global trade and the economy.
It is important to note that US President Donald Trump had offered Canada the option to become a US state, threatening tariffs if they declined. He also decided to impose tariffs on Mexico, accusing President Claudia Sheinbaum’s country of having ties with “criminal groups.” Sheinbaum strongly denied these allegations.
Over the weekend, Trump signed off on threats to impose 25% tariffs on neighboring countries Mexico and Canada, despite the free trade agreement, and increased existing tariffs on China by 10%. In response to the US tariffs, Canadian Prime Minister Justin Trudeau announced a 25% retaliatory tariff on the US.
Imposing a 25% tariff on the US would result in Canada gaining $15.5 billion in annual tariffs.
In response to Donald Trump’s move, all three countries—China, Canada, and Mexico—have announced immediate retaliatory actions. Meanwhile, analysts have warned the US president that a trade war could potentially slow down US growth and lead to increased inflation in the short term.
