On Wednesday, U.S. President Donald Trump suggested extending a delay in enforcing steep new tariffs on imports from Mexico and Canada until April 2. He also mentioned a 25% “reciprocal” tariff on European vehicles and other goods.
A White House official clarified that the March 4 deadline for the 25% tariffs on Mexican and Canadian imports was still in place “for now.”
This depends on Trump’s evaluation of measures taken by Mexico and Canada to secure their borders and address issues like migrant flows and fentanyl smuggling into the U.S.
During a cabinet meeting on Wednesday, Trump caused uncertainty when asked about the timeline for imposing tariffs on Canada and Mexico. He responded by saying the tariffs would start on April 2.
“I was initially going to do it on April 1,” Trump said. “But I’m a bit superstitious, so I moved it to April 2. A lot of the tariffs will take effect then.” Trump’s remarks affected currency markets, raising the Canadian dollar and Mexican peso against the U.S. dollar.
Canada Awaiting Formal Executive Order
Canada’s Innovation Minister François-Philippe Champagne stated that the country would wait for Trump’s formal executive orders before taking action.
“We’re focused on avoiding these tariffs or extending the suspension if needed,” Champagne said. “If tariffs are imposed, we’ll respond strategically, firmly, and in a targeted way.”
Mexico’s Economy Ministry did not comment on Trump’s statements. Still, it confirmed that Economy Minister Marcelo Ebrard would meet with U.S. Trade Representative Jamieson Greer on Thursday and Commerce Secretary Howard Lutnick on Friday.
Lutnick, speaking at the cabinet meeting, mentioned a 30-day pause on fentanyl-related measures but referred to “broad” tariffs beginning on April 2. He did not clarify if the March 4 deadline was still valid.
“So the main focus is on April 2,” Lutnick said. “But for fentanyl-related issues, there’s a 30-day review. By the end of that period, they need to convince the president that progress has been made. If not, there won’t be another pause.”
Trump plans to implement reciprocal tariffs in early April, matching the import fees and restrictions imposed by other countries. His advisers view value-added taxes in European countries as comparable to tariffs.
European Union Tariffs
When asked about the tariff rate on European Union goods, Trump said, “We’ve made a decision, and it’ll be announced soon. Generally, it’ll be 25%, mostly on cars and related items.” He described the EU as a “different situation” compared to Canada, accusing it of exploiting the U.S. in various ways.
“They don’t take our cars or most of our agricultural products,” Trump said, claiming the EU was established “to take advantage of the United States.”
A European Commission spokesperson pledged a strong and immediate response to what they called “unjustified trade barriers,” including tariffs that challenge fair trade policies. “The EU is the largest free market in the world and has benefitted the U.S.,” the spokesperson added.
Roberta Metsola, president of the European Parliament, was in Washington on Wednesday for meetings with U.S. lawmakers. However, there were no scheduled discussions with Trump administration officials.
Meanwhile, the U.S. Senate confirmed Jamieson Greer as the U.S. Trade Representative with a 56-43 vote on Wednesday. Greer, a seasoned trade expert from Trump’s first term, gained bipartisan support, including votes from five Democrats. Senators from Michigan, a key state for the auto industry, were among his supporters.
Industry groups welcomed Greer’s appointment and praised his commitment to U.S. businesses, farmers, and workers. Jake Colvin, president of the National Foreign Trade Council, said, “We’re aligned with Ambassador Greer’s focus on creating jobs and strengthening supply chains through a pragmatic trade approach.”
During his confirmation hearing, Greer said he planned to revisit the U.S.-Mexico-Canada Agreement (USMCA) to prevent China from exploiting it as a backdoor into the U.S. market. “We’ll take another look at the USMCA right away,” Greer stated.
When asked about potential changes to the agreement, Greer highlighted stricter rules for automotive content. “We should assess the origin rules for vehicles, aerospace, and other sectors to determine if further restrictions on components from non-market economies, like China, are needed,” he explained.
Source: Reuters
