This week, President Donald Trump made headlines by announcing, implementing, and then retracting several tariff threats concerning Canada, Mexico, and China, creating confusion and market reactions on Wall Street and Main Street.
Here’s a recap of the week’s events:
March 4: The imposition of Trump’s broad 25% tariffs on Mexico and Canada commenced on Tuesday. Additionally, the tariffs on all Chinese imports were escalated from 10% to 20%. The administration justified these tariffs by claiming they were essential to combat the influx of fentanyl into the U.S. Canada and China promptly retaliated with tariffs on American products, raising concerns of an impending trade war, while Mexico announced plans to respond on Sunday.
March 5: The following day, Trump provided a one-month exemption from auto tariffs for Mexico and Canada. Following discussions with Ford, General Motors, and Stellantis, Trump confirmed this temporary relief to protect the financial interests of America’s Big Three automakers.
White House press secretary Karoline Leavitt stated that the automakers should utilize this month-long reprieve to advance the president’s aims of revitalizing American auto production — a challenging task that would necessitate significant hiring, investment, and strategic planning.
March 6: On Thursday, Trump signed executive orders that delayed tariffs on products from Mexico and Canada covered by the USMCA free trade agreement until April 2. The USMCA, negotiated during Trump’s initial term, came after discussions with Mexican President Claudia Sheinbaum and talks among Canadian and U.S. officials. Sheinbaum indicated that, with the tariff pause in place, she would refrain from announcing pre-planned retaliatory tariffs.
Trump continued his sharp criticism of Canadian Prime Minister Justin Trudeau. In response, Canada announced it would delay the planned second wave of tariffs on over 4,000 U.S. products until April 2.
March 7: On Friday, Trump issued a warning of new tariffs on Canadian lumber and dairy items.
“Canada has been taking advantage of us for years regarding lumber and dairy products,” Trump remarked during his Oval Office address on Friday, referencing Canada’s steep tariffs of approximately 250% on U.S. dairy exports. He stated that the U.S. would impose matching tariffs.
“We might announce this as soon as today, or it could be delayed until Monday or Tuesday,” Trump said. “We’re going to impose the same tariffs. It’s unjust. It always has been unjust, and they’ve mistreated our farmers.”
On Friday, Trump added that more “changes and adjustments” to tariffs should be anticipated in the future.
