Donald Trump, on Thursday, March 6, suspended the 25% tariff he had imposed earlier this week on most goods imported from Canada and Mexico. The move has rattled financial markets and raised concerns about inflation and slowing economic growth.
The exemptions, which cover America's two largest trading partners, will remain in effect until April 2.
Trump had imposed a 25% tariff on imports from both countries on Tuesday, March 4, and had previously exempted only Mexico from the tariff on Thursday; however, an amendment he signed on Thursday afternoon included Canada. All three countries, including Canada and Mexico, are members of the North American Free Trade Agreement.
Trump first announced the tariffs in early February but delayed them for Canada and Mexico until Tuesday. He refused to delay them again earlier this week and also doubled the 10% tariff that had been in place since February 4 on Chinese imports. Trump also announced that the 25% tariff on steel and aluminum imports would go into effect as scheduled on March 12. Canada and Mexico are both major exporters of these metals to the U.S. market, with Canada, in particular, supplying the bulk of U.S. aluminum imports.
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