Trump Suspends Tariffs on Canada and Mexico for 30 Days

Trump Suspends Tariffs on Canada and Mexico for 30 Days

U.S. President Donald Trump has announced a 30-day suspension of tariffs on Canada,
which were originally set to take effect at a
25% rate on Sunday,
according to Canadian Prime Minister
Justin Trudeau.

 

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Trump

In a post on X (formerly Twitter), Trudeau stated:
“I had a good call with President Trump,” noting that the suspension came after
Canada pledged to
stop the flow of the deadly drug fentanyl into the United States.

The decision followed a similar announcement regarding Mexico,
where the country’s president
offered Trump a 30-day suspension of tariffs in exchange for
deploying forces at the border to combat drug smuggling into the U.S.

This announcement came after a day of heightened tensions in both U.S. and global markets,
where fears over
protectionist policies triggered a broad sell-off. However, markets recovered some losses:

 

 

 

 

 

 

 

China

Prepares Retaliatory Tariffs on U.S. Imports

China is preparing countermeasures against the United States after Trump’s administration imposed new tariffs on Chinese imports last weekend.

According to news reports released Tuesday morning, China is planning to impose tariffs on certain U.S. energy imports,
including
coal and liquefied natural gas (LNG), with a 15% duty on these products.

Additionally, reports indicate that Beijing is considering imposing further tariffs on U.S. oil and agricultural machinery,
in response to
Trump’s trade policies, which have targeted multiple countries—particularly China—in an effort to improve the U.S. trade balance.

 

 

 

 

 

 

The Federal Reserve

Chicago Fed President: Caution Needed in Cutting Interest Rates Amid Rising Uncertainty

Austan Goolsbee, President of the Chicago Federal Reserve, stressed that the central bank should exercise caution
when considering further interest rate cuts, given the
rising uncertainty caused by Trump’s policies.

In a radio interview on Monday, Goolsbee explained that policymakers must act wisely
when determining the pace of
rate reductions, highlighting the potential risk of inflation rebounding—as reported by Bloomberg.

He also emphasized that evaluating the Federal Reserve’s approach to the impact of tariffs remains a significant challenge, as it is difficult to distinguish whether inflation is rising due to stronger economic activity or if it is merely a temporary effect of escalating trade tensions.

 

 

 

Trump Suspends Tariffs on Canada and Mexico for 30 Days