By
Reuters
Printed
February 26, 2025
U.S. President Donald Trump on Wednesday raised hopes for one more month-long pause on steep new tariffs on imports from Mexico and Canada, saying they may take impact on April 2, and floated a 25% “reciprocal” tariff on European vehicles and different items.
Reuters
A White Home official, nevertheless, mentioned Trump’s earlier March 4 deadline for the 25% tariffs on Mexican and Canadian items remained in impact “as of this moment,” pending his evaluation of Mexican and Canadian actions to safe their borders and halt the circulate of migrants and the opioid fentanyl into the U.S.
Trump sowed confusion throughout his first cupboard assembly on Wednesday, when he was requested in regards to the timing for the beginning of the duties for Canada and Mexico and replied that it could be April 2.
“I have to tell you that, you know, on April 2, I was going to do it on April 1,” Trump mentioned. “But I’m a little bit superstitious, I made it April 2, the tariffs go on. Not all of them but a lot of them.”
Trump’s feedback prompted jumps within the worth of the Canadian greenback and Mexican peso versus the dollar.
Canadian Innovation Minister Francois-Philippe Champagne advised reporters that Canada would look ahead to signed government orders from Trump earlier than reacting.
“Our mission is still to avoid the tariffs, extend the suspension if we need to,” Champagne mentioned. “We are prepared – there will be a targeted, strategic but a firm response” if Trump imposes tariffs.
Mexico’s Financial system Ministry declined to touch upon Trump’s remarks, however mentioned Financial system Minister Marcelo Ebrard will meet on Thursday with newly confirmed U.S. Commerce Consultant Jamieson Greer and Commerce Secretary Howard Lutnick on Friday.
Lutnick advised the cupboard assembly that the fentanyl-related actions had been paused for 30 days however referred to “overall” tariffs on April 2. He didn’t specify whether or not the March 4 deadline remained in impact.
“So the big transaction is April 2, but the fentanyl-related things, we’re working hard on the border,” Lutnick mentioned. “At the end of that 30 days, they have to prove to the president that they’ve satisfied him in that regard. If they have, he’ll give them a pause, or he won’t.”
Trump has focused early April for imposing reciprocal tariffs matching import obligation charges of different international locations and offseting their different restrictions. His commerce advisers contemplate European international locations’ worth added taxes to be akin to a tariff.
Trump, requested whether or not he has selected a tariff fee for items from the European Union, replied: “We have made a decision, and we’ll be announcing it very soon, and it’ll be 25%, generally speaking, and that’ll be on cars, and all of the things.”
He mentioned the EU is a “different case” from Canada and takes benefit of the U.S. in several methods.
“They don’t accept our cars. They don’t accept, essentially our farm products,” Trump mentioned, including that the EU was fashioned “in order to screw the United States.”
A European Fee spokesperson mentioned the EU “will react firmly and immediately against unjustified barriers to free and fair trade,” together with for tariffs that problem authorized and non-discriminatory insurance policies.
“The European Union is the world’s largest free market. And it has been a boon for the United States,” the spokesperson mentioned.
Roberta Metsola, president of the European Parliament, was planning to satisfy with U.S. lawmakers in Washington on Wednesday, however not with any Trump administration officers.
Additionally on Wednesday, the U.S. Senate voted 56-43 to substantiate Greer as U.S. Commerce Consultant, placing a veteran of the Republican president’s first-term commerce wars absolutely on the job.
Greer, who served as chief of workers to former USTR Robert Lighthizer, gained the assist of 5 Democrats, together with each senators from Michigan, the middle of the U.S. auto business.
Commerce teams welcomed Greer’s affirmation, lauding his dedication to consulting with business and standing up for U.S. companies, farmers and staff. “We share Ambassador Greer’s desire for an active and pragmatic trade policy that creates U.S. jobs and more resilient supply chains,” mentioned Jake Colvin, president of the Nationwide International Commerce Council.
Greer advised senators throughout his Senate affirmation listening to that he needed to shortly renegotiate the U.S.-Mexico-Canada Settlement on commerce to make sure China doesn’t use it as a again door to the U.S. market to keep away from different tariffs.
“Right out of the gate, I expect that we’ll be taking a second look at the USMCA,” Greer mentioned.
Requested what modifications he wish to see within the pact, Greer zeroed in on additional tightening automotive content material guidelines.
“I think we should look at the rule of origin for automobiles and aerospace and other things to look and see if we need to have any kind of restriction on content or value added from foreign countries of concern, or non-market economies,” he mentioned, utilizing language that U.S. commerce officers usually use to explain China.
© Thomson Reuters 2025 All rights reserved.
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