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The administration of Donald Trump has behind his threat to impose radical rates of 25% in Mexico and Canada, in a major ascent of its aggressive commercial program.
In the second turnover in two days, the American president signed an executive decree saying that all the goods that respected the rules of a free trade agreement of 2020 with the neighbors of the United States would be granted a stay of the month of the homework.
Trump said on Wednesday that the manufacturers of cars that conform to the USMCA would be granted a month -long neckline.
The change of policy occurred after Trump doubled his plan plan in his speech at the Congress this week, saying: “There will be a little disturbance, but we agree with that.”
The imposition of levies caused a turbulent market reaction on Tuesday after Canada and Mexico announced its intention to retaliate. All post-electoral gains from the S&P 500 were erased after additional declines on Thursday.
Howard Lungick, Trump’s trade secretary, said on Thursday that stock market movements would not stimulate US trade policy.
“The fact that the stock market increases or decreases half a for a hundred compared to a given day is not the driving force of our result,” said Lunick.
He added that he wanted to lead “factory production to America”.
“We want the job to flourish in America. We want to train the new industrial revolution of AI to perform in America, ”said Lunick.
The change in the Trump administration is the last of a deployment of chaotic policy that has shook American trade partners. According to the US trade representative, the trade in American goods and services under USMCA totaled around 1.8 TN in 2022.
Washington’s latest move occurred a few hours after the data showed that the American trade deficit inflated in January to a record of $ 131.4 billion, against a deficit of $ 98.1 billion in December. Economists said the increase was partly due to companies rushing to storage goods before prices.
Lutnick said on Thursday that he hoped that Canada and Mexico would have made enough progress at Trump’s request to repress the traffic of fatal opioid drugs by the expected end of the price of priced on April 2.
If this is the case, he said: “This part of the conversation will be outside the table and that it will just go to the reciprocal tariff conversation”.
Trump said he was planning to impose so -called reciprocal prices on business partners from April 2 to retaliate against taxes, samples, regulations and subsidies that Washington considers unfair.
Lutnick’s comments sparked gains in Canadian and Mexican currencies. The Canada dollar increased by 0.4% to $ 1,4282 CA against the greenback. The Peso of Mexico joined 0.7% to 20.24 against the dollar.
American shares were volatile Thursday, the S&P 500 exchanging 1.5% in early afternoon in New York and the Nasdaq composite of technology merchant 2%.
