President Donald Trump has decided to delay the 25 per cent tariffs on Canada and Mexico for 30 days less than a week after he executively signed off its order.
Trump’s tariff order last weekend was met with retaliatory preparations from both Canadian and Mexican governments almost instantaneously. Canadian Prime Minister Justin Trudeau announced a 25 per cent tariff on CA $155 billion ($105.7 billion) worth of American goods. At the same time, Mexican President Claudia Sheinbaum revealed in an X post that she had directed her economic minister to introduce tariff measures to protect Mexico’s interests, while fervently rejecting Trump’s drug-related accusations.
The tariff delay pulls the North American continent back from the brink of an internecine trade war, at least momentarily. Despite this cooperation, an amicable resolution between the US and China remains elusive with the US 10 per cent tariff on Chinese imports coming into effect on 4 February, prompting China to retaliate.
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Beijing declared the introduction of tariffs on a range of American goods, including a 15 per cent levy on coal and liquefied natural gas, alongside a 10 per cent tariff on crude oil and agricultural machinery, effective on 10 February, reported the BBC. Trump remains resolute about securing an agreement with his Chinese counterpart, while warning of stricter measures should it not be reached.
Speaking on the ramifications of the latest developments, maritime expert Lars Jensen stated: “For shippers, this is a problematic landscape within which to plan the supply chain.
“Given the magnitude of the postponed tariffs, it is likely that shippers will try to frontload as much cargo as possible within the 30-day timeframe where this is practical and feasible between the US, Mexico and Canada.”
