Trump changes course again, delays tariffs on most imports from Mexico

Washington: President Donald Trump said on Friday (AEDT) that he has postponed 25 per cent tariffs on most goods from Mexico for a month amid widespread fears of the impact of a broader trade war.

Trump’s announcement comes after his Commerce Secretary, Howard Lutnick, said earlier that tariffs on both Canada and Mexico would “likely” be delayed. No change was announced regarding the new tariffs imposed on Canada.

This is the second time Trump has postponed tariffs for a month since he first unveiled the import taxes in early February. The reprieve would apply to goods from Mexico that are compliant with the trade agreement Trump negotiated with Canada and Mexico in his first term.

“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” Trump said on Truth Social. “I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border.”

No details were released about what led to the temporary lifting of tariffs on Mexico.

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Trump’s on-again, off-again tariffs threats have roiled financial markets, lowered consumer confidence, and enveloped many businesses in an uncertain atmosphere that could delay hiring and investment. Lutnick emphasised that reciprocal tariffs, in which the United States applies import taxes on countries that tariff US exports, will still be implemented April 2.

Major US stock markets bounced off lows after Lutnick spoke, but only briefly. Significant declines already seen this week resumed within an hour. The stock market has fallen steadily this week in response to Trump’s tariff policies and the S&P 500 stock index is now 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 collaboration have yielded unprecedented results,” on a post on the social media platform X, formerly Twitter.