Washington (AP) – President Donald Trump postponed 25% prices on Thursday to most of Mexico goods Wider trade war.
Trump’s announcement comes after his trade secretary Howard Lunick said on Thursday than prices in Canada and Mexico would be “probably” delayed. No change has been announced regarding the new prices imposed in Canada, another major trading partner.
This is the second time that Trump has postponed prices since he has revealed import taxes in early February. The stay would apply to Mexico goods which comply with the trade agreement that Trump has negotiated with Canada and Mexico during his first mandate – which will probably cover the vast majority of imports.
“After talking with President Claudia Sheinbaum of Mexico, I agreed that Mexico will not be required to pay prices on all that relates to the USMCA agreement,” said Trump on Truth Social. “I did it as a hosting and out of respect for President Sheinbaum. Our relationship was very good, and we work hard, together, on the border. »»
No details were published Thursday on what led to the temporary lifting of the prices on Mexico, but not Canada.
Trudeau said Thursday that Lutnick’s comments were a “promising sign”, but that “also means that the prices remain in place and that our response will remain in place”. He also indicated that he expects his country to be in a War trade with the United States in the foreseeable future.
Booming pricing threats Lowering of consumer confidenceand wrapped many companies in a uncertain atmosphere This could delay hiring and investment. Lutnick stressed that reciprocal rates, in which the United States apply import taxes on countries that tariff implemented on April 2.
The main American stock markets rebounded on the stockings after Lunick spoke, but only briefly. Significant drops already seen this week have resumed within the hour. The S&P 500 stock market index fell below where it was before Trump was elected.
Sheinbaum said she and Trump “had an excellent and respectful call in which we agreed that our work and our collaboration have given unprecedented results”, on an article on the X social media platform, formerly Twitter.
Mexico has repressed the cartels, sent troops to the American border and delivered 29 high bosses of the cartel long chased by the US authorities to the Trump administration in a few weeks.
During a press conference Sheinbaum developed his call with Trump on Thursday, saying that she told the president that Mexico made great progress to meet his security requests.
“I told him that we got results,” said Sheinbaum. But the United States has imposed the prices, so it asked Trump “How are we going to continue to cooperate, in collaboration with something that harms the inhabitants of Mexico?”
She added that “almost all trade” between the United States and Mexico will be exempt from prices until April 2.
She said the two countries will continue to work together on migration and security and reduce fentanyl trafficking in the United States
From January to February, the number of fentanyl seized on the border has dropped by more than 41%, according to Sheinbaum, citing American customs and border protection data. She quoted diving as a meeting with a commitment to Trump.
Ontario Prime Minister Doug Ford, head of the most populated province in Canada, said that the province will charge 25% more on Monday for electricity sent to 1.5 million Americans in response to Trump’s pricing plan. Ontario provides electricity in Minnesota, New York and Michigan.
“All this with President Trump is a mess,” said Ford on Thursday. “This reprieve, we have already taken this route. He still threatens prices on April 2. »»
The Ford office said that the price would remain in place even if there were a month -round American month. Ford said that as long as the threat of prices was continuing, Ontario’s position does not change.
She added that Trump said that he would retract the flow of American weapons tampered with Mexico, which fueled the Cartels war in the Latin American country, although Trump did not develop what his government has done to approach arms trafficking.
Sheinbaum was able to sail in the complex relationship with Trump and joined Mexican nationalism with his message of Mexican sovereignty, which generated an evolution of approval notes. While the tensions between Trump and Canadian Prime Minister Justin Trudeau simmered, Sheinbaum took a severe tone but seemed to establish a relatively friendly relationship with the American president.
Lutnick said Canada and Mexico “have done a good job offering us more and more work” on stopping fentanyl at the border, a key request that Trump made in exchange for the permanent lifting of prices. Trump also offered Many other reasons For its prices, in particular the increase in revenues from the federal government, the return of manufacturing to the United States and the reduction of trade surpluses of the two countries with the United States
However, Lutnick said that he would look at the death of fentanyl overdose in the United States as a key “metric” on which he will concentrate when assessing Canada and Mexico efforts to combat the synthetic opioid.
In his Speech to a joint session From Congress on Tuesday evening, Trump has depicted prices – which he also taken from China – as a source of wealth and growing power for the United States.
However, most economists expect import rights send higher prices, slow the economy and potentially cost jobs.
The Yale University Budget Lab said that the prices on Canada, China and Mexico would increase inflation from a full point, reduce the growth of half a percentage and cost the average household for around $ 1,600 in disposable income.
Trump seemed to recognize on Tuesday evening that there could be pain: “There will be a little disturbance, but we agree with that. It won’t be much.
_____
The editors of the Associated Press Josh Boak, Rob Gillies and Megan Janetsky contributed to this report. Janetsky reported to Mexico City. Gillies reported in Toronto.
