US President Donald Trump announced a temporary delay on certain tariffs targeting Canada and Mexico, offering relief to industries and calming financial markets after recent turbulence. The move comes after stock markets tumbled following the implementation of up to 25 percent tariffs earlier in the week, raising concerns over inflation and economic slowdown.

Trump’s orders postpone tariffs on Canadian and Mexican imports under the US-Mexico-Canada Agreement (USMCA) until April 2. This provides relief to automakers, whose supply chains rely on cross-border trade. Following discussions with US automakers Ford, Stellantis, and General Motors, Washington granted a one-month exemption for autos moving through the USMCA.

Despite the delay, a White House official confirmed that 62 percent of Canadian imports would still face tariffs, mainly energy products at a lower 10 percent rate. Meanwhile, about half of Mexican imports will remain exempt.

Canadian Finance Minister Dominic LeBlanc welcomed the pause, stating that Ottawa would hold off on a second wave of retaliatory tariffs on $125 billion worth of US goods until April 2. However, Canadian Prime Minister Justin Trudeau warned that the trade conflict was far from over, emphasizing Canada’s goal of removing all tariffs.

Trump maintained that broader steel and aluminum tariffs, set to take effect next week, would remain unchanged. He also indicated that more reciprocal tariffs would be introduced after April 2.

Addressing concerns over inflation, US Treasury Secretary Scott Bessent downplayed the impact, arguing that tariffs support economic security over access to cheap goods.

With the US trade deficit surging 34 percent to a record $131.4 billion in January, analysts believe businesses rushed to import goods before tariffs took effect. The situation remains fluid as trade tensions continue to evolve.

US President Donald Trump announced a temporary delay on certain tariffs targeting Canada and Mexico, offering relief to industries and calming financial markets after recent turbulence. The move comes after stock markets tumbled following the implementation of up to 25 percent tariffs earlier in the week, raising concerns over inflation and economic slowdown.

Trump’s orders postpone tariffs on Canadian and Mexican imports under the US-Mexico-Canada Agreement (USMCA) until April 2. This provides relief to automakers, whose supply chains rely on cross-border trade. Following discussions with US automakers Ford, Stellantis, and General Motors, Washington granted a one-month exemption for autos moving through the USMCA.

Despite the delay, a White House official confirmed that 62 percent of Canadian imports would still face tariffs, mainly energy products at a lower 10 percent rate. Meanwhile, about half of Mexican imports will remain exempt.

Canadian Finance Minister Dominic LeBlanc welcomed the pause, stating that Ottawa would hold off on a second wave of retaliatory tariffs on $125 billion worth of US goods until April 2. However, Canadian Prime Minister Justin Trudeau warned that the trade conflict was far from over, emphasizing Canada’s goal of removing all tariffs.

Trump maintained that broader steel and aluminum tariffs, set to take effect next week, would remain unchanged. He also indicated that more reciprocal tariffs would be introduced after April 2.

Addressing concerns over inflation, US Treasury Secretary Scott Bessent downplayed the impact, arguing that tariffs support economic security over access to cheap goods.

With the US trade deficit surging 34 percent to a record $131.4 billion in January, analysts believe businesses rushed to import goods before tariffs took effect. The situation remains fluid as trade tensions continue to evolve.