President Trump granted partial exemptions on tariffs for goods from Mexico and Canada that comply with the North American trade deal, delaying the full impact until April 2nd when he plans another round of retaliatory tariffs, after speaking with U.S. automakers' CEOs.
Tariffs, taxes on imported goods and services, are double-edged swords wielded by governments to raise revenue, protect domestic industries, and exert political leverage, but can backfire with higher consumer prices and escalating trade wars, straining economies and international relations.
President Trump is poised to unveil a compromise deal with Canada and Mexico that would scale back his controversial 25% tariffs on imports from those countries in exchange for concessions addressing his concerns, potentially easing trade tensions.
President Trump's imposition of steep tariffs on imports from key trade partners sparked retaliatory measures and ignited a trade war, causing market turmoil and major stock losses amid escalating tensions.
In an escalating trade war, President Trump imposed steep 25% tariffs on imports from key allies Canada and Mexico, while also doubling tariffs on Chinese imports to 20%, sending stock markets plunging amid fears of a global trade conflict.
Stock markets plunged on Friday, with the S&P 500 falling 1.76% and the Dow Jones Industrial Average dropping 649.67 points, as President Trump confirmed that 25% tariffs on imports from Mexico and Canada will take effect on Tuesday, dashing hopes of a last-minute deal to avert the full tariffs.
Despite a temporary delay, President Trump vows to impose sweeping tariffs on imports from Canada and Mexico, claiming the U.S. has been exploited by foreign nations, and plans to enact 'reciprocal tariffs' as the pause on new tariffs ends next week.