U.S President Donald Trump has signed orders significantly expanding the goods exempted from his new tariffs on Canada and Mexico that were imposed this week.
Gatekeepers News reports that this is the second time in two days that Trump has rolled back his taxes on imports from the US’s two biggest trade partners
On Wednesday, he said he would temporarily spare carmakers from 25% import levies just a day after they came into effect.
Mexican President Claudia Sheinbaum thanked Trump for the move, while Canada’s finance minister said the country would in turn hold off on its threatened second round of retaliatory tariffs on US products.
Canadian Prime Minister Justin Trudeau said on Thursday morning he had had a “colourful” conversation about tariffs in a phone call with Trump.
The US president used profane language more than once during Wednesday’s heated exchange, according to US and Canadian media reports.
Trudeau told reporters that a trade war between the two allies was likely for the foreseeable future, despite some targeted relief.
“Our goal remains to get these tariffs, all tariffs removed,” he said.
Sheinbaum said she had had an “excellent and respectful” call with Trump, adding that the two countries would work together to stem the flow of the opioid fentanyl from Mexico into the US and curb the trafficking of guns going the other way.
The carveout from the duties applies to goods shipped under North America’s free trade pact, the US-Mexico-Canada agreement (USMCA) , which Trump signed during his first term.
Items that currently come into the US under the pact’s rules include televisions, air conditioners, avocados and beef, according to analysis by the firm Trade Partnership Worldwide.
The measures also reduced tariffs on potash – a key ingredient for fertiliser needed by US farmers – from 25% to 10%.
A White House official said about 50% of US imports from Mexico and 62% from Canada may still face tariffs. Those proportions could change as firms change their practices in response to the order.
The White House has also continued to promote its plans for other tariffs, promising action on 2 April, when officials have said they will unveil recommendations for tailored, “reciprocal” trade duties on countries around the world
