Old Man Trump Walks Back Tariffs Threats, Again
Written by djfrosty on March 7, 2025
Source: Alex Wong / Getty
President Donald Trump is facing questions after walking back threatened tariffs on Mexico & Canada for the second time.
On Thursday (March 6), President Donald Trump reversed course and postponed tariffs of 25% of goods that he levied against Mexico and Canada on Tuesday (March 4) for the second time, leading many to question his process. He stated that they would be postponed until April 2. Trump had bragged about the tariffs at his State of The Union address then, claiming they would lead the U.S. to success. “Tariffs are about making America rich again and making America great again. And it’s happening, and it will happen rather quickly. There’ll be a little disturbance. We’re okay with that. It won’t be much,” he said at the time.
Canada, Mexico, and China immediately responded with their retaliatory tariffs, which sent the stock market tumbling on Wednesday (March 5)with the Dow falling 1,300 points in response to consumer concerns stateside about rising prices. On Thursday, Trump spoke with Mexican President Claudia Sheinbaum, who said afterward in a post on X, formerly Twitter, that they “had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results.” Hours later, Trump signed an executive order granting the same postponement to Canada.
Commerce Secretary Harold Lutnick mentioned the possibility of tariff postponements in a CNBC interview, stating that it would cover all goods. “ I think it’s likely that it will cover all USMCA-compliant goods and services,” he said. The USMCA refers to the United States-Mexico-Canada trade agreement that was signed in 2018, and enforced beginning in 2020. Initially, Trump was seeking to relieve tariffs on automakers, no doubt in response to a Fox News segment where an auto dealer explained that the immediate effect of the tariffs would add $20,000 to the price of a car on the lot.
Trump’s backpedaling didn’t come without criticism. Canadian Prime Minister Justin Trudeau blasted him in a press conference on Tuesday. “Today the United States launched a trade war against Canada, their closest partner and ally, their closest friend. At the same time, they are talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense,” he said. China was more direct, expressing that they would “resolutely counter” all tariffs placed on their goods.