Donald Trump Postpones Canada, Mexico Tariffs Following Market Reaction

US Trump, President of the United States Donald Trump on Thursday delayed some tariffs targeted at Canada and Mexico, causing Ottawa to put a stop to an expected wave of countermeasures in a move that provides relief for both consumers and companies following the financial markets were hit with a blow.

The market fell after President Donald Trump tariffs that could be as high as 25 percent came into effect on Tuesday, while experts warned that the sweeping tax hikes could impede US growth and boost inflation.

However, Trump issued orders on Wednesday to delay upcoming tariffs on Canadian as well as Mexican imports covered by the North American trade agreement, but he ruled out the notion that his decision was tied to market volatility.

The suspension that is scheduled to last until April 2 will provide some relief to automakers.

In the automotive industry parts are transported across North American borders multiple times during the process of manufacturing.

Following discussions between representatives of the "Big Three" US automakers -namely Stellantis, Ford and General Motors The three companies in Washington initially declared a one-month exempt for vehicles that are part of the United US-Mexico-Canada agreement (USMCA).

An official from the White House official told reporters that around the 62 percent Canadian imports would still be subject to the Trump reciprocal tariffs that were announced, even though the majority of them are energy-related products that will be hit at a an amount that is lower than 10 percent.

The majority of Mexican imports pass from the USMCA.

The latest changes make the environment "much more favorable for our American car manufacturers," Trump declared on Thursday.

Trump announced on Thursday that additional tariffs will be imposed in April 2nd, stating they would have to be "reciprocal in nature." He had previously promised reciprocal levies to end the unfair practices Washington finds unfair.