Trump backs down on tariffs as US economy struggles

In a surprising turn of events, U.S President Donald Trump has suddenly paused his 25% tariffs on imports from Canada and Mexico.

As reported by AL24 News, the tariffs-only implemented on March 4th were suspended by the Trump administration on March 6th amid growing economic uncertainty in the US stock market.

According to Bill Sterling , a global strategist at an investment firm in Boston, Trump’s “on-again, off-again” approach to tariffs on Mexico  and Canada is a key factor behind the market’s volatility.

Trump first announced plans for tariffs on Mexico and Canada on his inauguration day, January 20. He justified the move by linking weak  US borders with the fentanyl crisis, arguing that drugs from China were being smuggled into the US through its North American neighbours.

For this reason, Trump also imposed a 20% tariff on all Chinese imports.

However, since then, the administration has taken an inconsistent approach to its trade war, imposing tariffs on some products but not others.

For example, in Canada, the administration has taken an inconsistent approach to its trade war, imposing tariffs on some products but not others.

For example, in Canada, the administration placed a 10% levy on energy products but exempted agricultural imports such as potash, a critical fertilizer for US farmers. Slimily, a 25% tariff on automotive goods from Canada and Mexico was paused after the US economy  suffered infatuation and Trump met top US auto manufactures.

Despite economic stagnation and the instability these tariffs have caused, the Trump administration remains committed to their eventual implementation.

According to US Commerce Secretary Howard Lutnick, “On April 2, we’re going to move forward with the reciprocal tariffs”. This suggests that the pause is only temporary , and the tariffs will eventually come into effect.

The US’s trade partners are preparing to retaliate. Canada has already announced tariffs on $125 billion worth of US products in response.

In a public statement ,Canadian Prime minster Justin Trudeau declared that Canada will “continue  to be in a trade war” with the US for the foreseeable future.

Despite the brief pause in tariffs, it appears increasingly likely that the trade war will escalate after April 2. The Trump administration’s unpredictability and the harsh reality measures from the US allies indicate that economic  tensions will continue to rise.

As such, the seemingly unavoidable trade war between the US and its close partners and allies is set to continue.

AL24 News