American customs duties: Trump turns and is back for Canada and Mexico

The new episode of a saga that has lasted since its return to power. Donald Trump fell back on the 25 % customs duties on Thursday he had imposed in Canada and Mexico. Enough to lower the commercial tension between these countries.

The Republican President has paused the 25 % customs duties until April 2 for Mexican and Canadian products, respecting the specifications of the Canada-Mexico-Etats Free Trade Agreement (ACEUM). At the same time, he decided to reduce customs duties imposed on the Canadian potash, used as fertilizer by American agriculture, to 10 %.

Canada has replied by announcing to renounce to set up, for the time being, its second phase of customs duties on American products “until April 2, the time we continue to work to withdraw all taxes,” the Canadian Minister of Finance, Dominic Leblanc said on X.

Ottawa reacted on Tuesday by price reprisals on $ 30 billion Canadian dollars (about $ 19.5 billion) of American products and assured that the list would lengthen over time, reaching a total of $ 125 billion Canadian dollars ($ 87 billion).

Trump always critical of Trudeau

Donald Trump had initially announced Thursday an exemption from Mexican products after exchanging with President Claudia Sheinbaum, before saying a few hours later that Canada would also benefit from it.

According to an American official, more than 50 % of Mexican products and 38 % of Canadian products entered 2024 in the United States under the ACEUM. The 25 %surcharge, which Donald Trump justified by the need to fight illegal immigration and arrivals in the United States of Fentanyl, concerned for example lawyers and tomatoes in Mexico or construction wood and poultry from Canada.

On Wednesday, Donald Trump had already conceded an exemption of one month for the crucial automotive sector at the request of American manufacturers. If he was positive with regard to the Mexican president, Donald Trump has kept a more acerbic tone with regard to Justin Trudeau, accusing him of using the question of customs duties to try to hang on to power, while the Prime Minister will leave his post in a few days.

On April 2, reciprocal customs duties, which predict that the United States taxed from a country at the same rate, which are in the same country in the said country, will be into force. Donald Trump has also assured that world’s customs duties and aluminum aluminum would come into effect as expected next week, including metals from Canada and Mexico.

Since Beijing, the Chinese Minister of Foreign Affairs Wang Yi denounced, this Friday, American customs duties “unjustified”, warning against “the jungle law” on the international scene. The Chinese economy should face a 20 % increase in additional customs duties on its products entering the United States, according to the latest act of the commercial showdown engaged with Washington. “If cooperation is chosen, it can lead to a reciprocal benefit, but if the pressure continues, China will respond firmly,” said Wang Yi.

First concerns about the economy

Several trusted indicators have stuck from the nose since the start of the year and the risks of stagflation, the association of low growth and high inflation, have returned to the mouth of a certain number of analysts.

“In the long term I am not worried about inflation,” said the secretary of the treasure, Scott is considering that “access to cheap products is not the foundation of the American dream” but rather “prosperity, social ascent and economic security” for all.

World places have been shaken in recent days, Wall Street in particular accusing a clear withdrawal but Donald Trump assured that his customs policy had nothing to do with the moods of the Stock Exchange. The New York Stock Exchange finished a third session of a sharp drop in four days on Thursday, disappointed to learn the maintenance of customs duties on steel and aluminum and by the procrastination of the American president.

The trade deficit in January has reached its highest level since 1992, under the combined effect of major gold purchases and anticipation of customs duties.