Trump's Tariff Tango: A Trade Balancing Act

U.S. President Trump announced a temporary reprieve on new 25% tariffs for Canada and Mexico under a free trade deal to support automakers. The tariffs may go up after April 2nd if no progress is made on issues like fentanyl trade. Adjustments aim to balance tariff policies among involved countries.

In a move impacting international trade, U.S. President Donald Trump announced a temporary relief on the newly imposed 25% tariffs for Canada and Mexico, aligning with the regional free trade agreement.

This decision, intended to support American automakers, is provisional and may pivot come April 2, depending on developments like trade in fentanyl. The U.S. tariff structure is slated for a reevaluation, potentially leading to reciprocal adjustments based on foreign tariffs since Trump's administration seeks equilibrium.

Concurrently, tariffs on steel and aluminum will be revised, subjecting Canadian and Mexican imports to adjustments. Canadian officials express concerns over shifting policies, seeking clear guidelines for stabilizing trade relations as renegotiations loom in 2026.

(With inputs from agencies.)