President Donald Trump is rolling back some of the tariffs imposed on Canada and Mexico.
Press Secretary Karoline Leavitt announced that the president is giving a one-month tariff exemption for auto imports.
‘We spoke with the Big Three auto dealers. We are going to give a one-month exemption on any autos coming through USMCA. Reciprocal tariffs will still go into effect on April 2,’ she said during the press briefing Wednesday.
That comes one day after Trump met with the ‘Big Three’ automakers – General Motors, Ford and Stellantis.
On Tuesday, the U.S. imposed 25 percent tariffs on all good imported from the two neighboring countries this week rocketing the country into a trade war.
Commerce Secretary Howard Lutnick appeared on Bloomberg on Wednesday morning where he said the president is considering easing some tariffs.
‘There are going to be tariffs, let’s be clear, but what he’s thinking about is which sections of the market that can maybe, maybe he’ll consider giving them relief,’ Lutnick said.
The commerce secretary said that could go until they get to April 2.
The Trump administration appeared ready to blink first as the markets took a massive tumble this week, and Canada and China announced reciprocal tariffs.
But the trade war between the U.S. and major trade partners is far from over.
‘I don’t want anybody to forget, April 2 is the day that we announce our reciprocal tariffs around the world,’ Lutnick noted.
Commerce Secretary Howard Lutnick after President Trump’s address to a joint session of Congress on Tuesday
When asked for additional clarity on the timing of an announcement, Lutnick suggested it would be Wednesday afternoon.
‘The president is listening to the offers from Mexico and Canada. He’s thinking about trying to do something in the middle. He’s thinking about it. We’re talking about it,’ Lutnick said.
He said he expects it to be ‘not 100 percent of all products and not none – somewhere in the middle.’
Lutnick claimed that Canada and Mexico are working hard to address drug trafficking at the border. He argued it’s ‘not a trade war, this is a drug war.’
But Canadian officials appear less willing to meet halfway and indicated they’ve shared that with American counterparts.
‘We’re not interested in some sort of reduction of the tariffs. We want the free trade agreement with the United States and Mexico respected,’ Canadian Finance Minister Dominic LeBlanc said in an interview with the Canadian Broadcasting Corporation.
Canada responded to the U.S. tariffs by announcing it would impose reciprocal tariffs on $30 billion worth of products immediately and said there would be more to come within 21 days.
Canadian Prime Minister Justin Trudeau called Trump imposing tariffs a ‘very dumb thing to do.’
Canadian Prime Minister Justin Trudeau announce reciprocal tariffs on March 4
Trump admitted the tariffs imposted on trade partners would cause a ‘little disturbance’ during his address to a joint session of Congress on Tuesday, March 4
China also announced 10 and 15 percent additional tariffs on some U.S. goods. The president of Mexico said her country would announce its reciprocal tariffs on Sunday.
Speaking to a joint session of Congress on Tuesday night, Trump admitted that the tariffs on its major trade partners would cause a ‘little disturbance,’ but he argued it ‘won’t be much.’
