President Trump’s self-imposed Feb. 1 deadline for a first round of tariffs on Canada, Mexico, and China looms in less than a day as economic observers and world leaders try to plan amid the uncertainty.
On Thursday afternoon, Trump reiterated his plans to put a 25% tariff on imports from Mexico and Canada, repeating his warning against America’s two top trade partners. But even then, he added to the uncertainty by saying some provisions remain undecided.
“We may or may not,” Trump said at the White House about whether the tariffs would apply to oil. “We’re going to make that determination probably tonight.”
It was the latest in a series of comments and private signals that have offered little clarity and left many in wait-and-see mode.
Trump has consistently promised the tariffs are coming, even as comments from his Commerce secretary pick and a reported search for an 11th-hour deal suggest an off-ramp to delay tariffs remains a real possibility.
Yet the search for a last-minute deal is expected to go down to the wire.
Leaders in Canada and Mexico have expressed confusion and frustration about what they can do, given Trump has cited issues of migration and illegal fentanyl as the rationale for the tariffs coming as soon as Saturday, February 1st.
Matthew Holmes of the Canadian Chamber of Commerce weighed in late Thursday, calling any tariffs lose-lose. “We will keep working with partners to show President Trump and Americans that this doesn’t make life any more affordable. It makes life more expensive and sends our integrated businesses scrambling.”
Mexican President Claudia Sheinbaum was asked about 25% tariffs on her country this week and offered, “We don’t expect it will happen … but if it does, we have our plan.”
Likewise, Canadian Prime Minister Justin Trudeau warned Wednesday that his government is preparing a strong response if the US imposes tariffs on his nation.
Economists have projected that Trump going forward with his tariff plans for the two nations in full — and keeping them in place — could push both into a recession.
Click here to read the complete, original article by Ben Werschkul on Yahoo Finance
Source: Yahoo Finance
