WASHINGTON: US President Donald Trump imposed vast tariffs this week on key partners Canada and Mexico, roiling cross-border ties before offering temporary relief to manufacturers — but with more levies kicking in next week, the respite may be fleeting.
US companies faced a series of duties starting Monday, with Trump doubling an additional levy on Chinese goods before allowing 25 per cent tariffs on Canadian and Mexican imports to take effect Tuesday.
The moves rattled markets, sending major Wall Street indexes down, and the president on Thursday announced exemptions for Canadian and Mexican goods entering the United States under a North American trade pact.
For Mexican goods, this proportion is around half, the White House estimates.
“It’s surprising because it’s such a self-destructive policy,” said Philip Luck, director of the economics program at the Center for Strategic and International Studies (CSIS). Referring to the initial imposition of 25pc Canada and Mexico tariffs, Luck called it “economic kryptonite.”
Although Trump partially rolled back levies — taking into consideration heavily integrated North American auto supply chains — the fact that tariffs came on has lingering effects, Luck said.
Steel, aluminum hit
Looking ahead, Trump’s 25pc tariffs across steel and aluminum imports are due to take effect next Wednesday.
Trump has said he would not modify the levies.
These tariffs will also affect Canada and Mexico, both of whom export steel to the United States, alongside other trading partners like Brazil, South Korea and European countries.
But even as Washington seeks to help domestic steel producers, experts warn that targeting the metals harms various other industries.
Steel and aluminum are inputs to construction, data centers and automobiles, said Luck of CSIS.
And it is unclear if such tariffs do more good than harm.
Published in Dawn, March 9th, 2025