Trump will delay US tariffs on many products from Canada and Mexico, official says

Donald Trump is poised to pull back from his trade war with Canada and Mexico, according to one of his top officials, temporarily delaying tariffs on many goods from the two countries once again.

Two days after imposing sweeping tariffs on all imports from his country’s closest trading partners, the US president is said to be preparing to shelve duties on a wide range of products until April.

Trump has already softened the attack on Canada and Mexico, granting carmakers a one-month reprieve after they warned of widespread disruption. Top retail CEOs have also been bracing customers for significant price increases in grocery stores within days.

Senior administration figures have indicated that Trump is now planning a broader reprieve, potentially halting the tariffs on all products covered by an existing trade deal between the US, Mexico and Canada known as USMCA.

It is “likely” that relief “will cover all USMCA compliant goods and services”, Howard Lutnick, the US commerce secretary, told the news network CNBC on Thursday, “so that which is part of President Trump’s deal with Canada and Mexico are likely to get an exemption from these tariffs”.

He added: “The reprieve is for one month.”

During the president’s joint address to Congress on Tuesday evening, he acknowledged that tariffs would cause disruption. There will be “a little disturbance, but we’re OK with that”, he said.

Trump had initially pledged to target Canada and Mexico with tariffs on his first day back in office. Upon his return, however, he said he was considering imposing the tariffs at the start of February. Last month, he offered Canada and Mexico a one-month delay at the 11th hour.

Only on Tuesday did he pull the trigger, imposing 25% duties all goods from Mexico, and 25% duties on most goods from Canada, with 10% duties on Canadian energy products. He also doubled a tariff on Chinese exports from 10% to 20%.

Trump and his allies claim that higher tariffs on US imports from across the world will help “Make America great again”, by enabling it to obtain political and economic concessions from allies and rivals on the global stage.

But businesses, both inside the US and worldwide, have warned of significant damage to companies and consumers if the Trump administration pushes ahead with this strategy.

The president has repeatedly vowed to reduce the US trade deficit – the gap between what it exports to the world and imports from it – which hit a record $131.4bn in January.

Trump blamed the game on Joe Biden, his predecessor, on social media. “I will change that!!!”