The US President retreated in his customs clash with Canada and Mexico.
Punished tariffs of 25% of US imports from Canada and Mexico entered into force on Tuesday. However, on Thursday, Donald Trump signed a decree that stops most of them until April 2.
Dismissal affects the import of USMCA on free trade. This is an agreement concluded between the USA, Canada and Mexico during the first presidential term of Trump, has been working since 2020 and provides for the lack of tariffs for most mutual supplies of goods and services.
Before the signing of his new resolution, Trump talked with President Mexico Claudia Sheinbaum and Prime Minister Canada Justin Trudeau.
It seems that the risk has become too big for Trump, Bilder Builder Baunbel and Robert Bekker. From the close interweaving of the economy of the USA and Canada there was a threat of large losses. For example, in the production of cars, the components cross the border several times, and, according to experts, such duties can be absolutely uncompetitive.
The US stock markets also reacted negatively at the beginning of the week. Experts warn that trade wars will lead to an increase in inflation. And this is similar to a political character, Bild correspondents believe that a decrease in the cost of life was one of Trump’s most important elections.
Source: Racurs
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