Trump postpones tariffs on Canada and Mexico, stating that tariff policy is not affected by the US stock market

According to the Zhitong Finance APP, U.S. President Donald Trump announced a delay in imposing a 25% tariff on imports from Mexico and Canada that comply with the 2020 United States-Mexico-Canada Agreement (USMCA), and may further suspend tariffs on other goods. At the same time, he stated that the U.S. government would not consider short-term fluctuations in the stock market when formulating tariff policies, but would focus on the long-term economic interests of the country.

White House Announces Delay on Tariffs for Certain Mexican and Canadian Goods

The White House stated on Thursday afternoon that tariffs on Mexican and Canadian imports that comply with the USMCA agreement would be postponed. Specifically, the tariff on Canadian potash will be reduced from 25% to 10% to protect American farmers. Additionally, tariffs on the automotive industry have been postponed until April.

It is currently unclear which goods will still be affected by tariffs. According to foreign media citing White House officials, about 50% of Mexican imports and 37% of Canadian goods will enjoy the delayed tariff treatment. The tariff on Canadian energy imports is set at 10%, rather than the original 25%.

Trump stated on social media that after speaking with Mexican President Andrés Manuel López Obrador, he decided to postpone tariffs on Mexican goods, extending the deadline to April 2. This date is also a key point for the U.S. to announce countermeasures against countries implementing tariffs. López Obrador later responded on social media, saying, "We had a very good and respectful conversation, and both sides agreed that our cooperation has achieved unprecedented results while respecting each other's sovereignty."

Trump: Tariff Policy Will Not Be Influenced by Stock Market

In response to market concerns about tariff policies, Trump made it clear on Thursday that his administration would not base tariff policy decisions on stock market fluctuations. During a signing event for an executive order in the Oval Office, Trump was asked if he decided to postpone some tariffs due to the recent decline in the stock market. He responded, "This has nothing to do with the market. I haven't even been paying attention to the market because, in the long run, America will become stronger because of this series of policies."

He further emphasized that the U.S. tariff policy is designed to protect the domestic economy and prevent other countries and companies from "taking advantage of America." "This is about those countries and companies that have exploited America; they can no longer continue to do so."

Recently, the U.S. stock market has experienced turbulence, with the Nasdaq Composite Index falling more than 10% from its recent peak, entering a technical correction zone. Some Wall Street investors had hoped that Trump would consider stock market performance as a factor in economic policy, and there were even rumors of a "Trump put," suggesting that Trump would not allow the stock market to decline too much. However, recent trade policies indicate that the Trump administration does not seem to have changed its stance due to stock market adjustments.

Government Officials: Economic Growth is More Important than the Stock Market

U.S. Secretary of Commerce Gina Raimondo stated in an interview that the Trump administration's focus extends far beyond short-term fluctuations in the stock market, looking instead at overall national economic growth. She said, "The president is focused on America's growth and prosperity, not on the market rising or falling by 0.5% or 1% every day. We are rebuilding the American economy, and you will see American economic growth, interest rates drop by 1% or more, and the stock market will also experience a surge U.S. Treasury Secretary Becerra previously stated that Trump's tariff policy would not trigger long-term inflation, but rather a one-time "price adjustment." In addition, he emphasized that the purpose of the tariff policy is to adjust the international economic system, ensuring that the U.S. no longer "subsidizes countries with insufficient defense spending" and that the U.S. is no longer the ultimate consumer of global excess supply.

Although Trump has suspended some tariffs, trade policy remains fraught with uncertainty. April 2 is a critical juncture, when the U.S. government may announce counter-tariff measures against other countries while assessing Mexico and Canada's cooperation on the fentanyl issue. U.S. Secretary of Commerce Raimondo has made it clear that if Mexico and Canada fail to effectively control the influx of fentanyl into the U.S., tariffs may still come into effect