U.S. Delays Auto Tariffs on Canada, Mexico Amidst Trade Talks

The U.S. administration is reportedly considering a one-month delay in implementing auto tariffs on Canada and Mexico, according to sources familiar with the matter. This potential move comes as the U.S. has been engaged in ongoing trade negotiations with both countries, aiming to reach a mutually beneficial agreement.

Commerce Secretary Howard Lutnick hinted that President Trump is already considering tariff concessions, suggesting that the U.S. may be open to negotiations. However, Canadian Prime Minister Justin Trudeau has stated that he is not willing to lift Canada's retaliatory tariffs if Trump leaves any tariffs on Canada. Mexico, on the other hand, has indicated that it will respond to the U.S. tariffs with retaliatory measures of its own.

The U.S. officially imposed new 25% tariffs on Canada and Mexico on March 4, 2025, following through on a long-delayed pledge from President Donald Trump. The tariffs, which were initially announced in 2018, have been a source of contention between the U.S. and its North American neighbors. The U.S. has argued that the tariffs are necessary to protect American jobs and industries, while Canada and Mexico have maintained that the tariffs are unfair and will harm economic growth.

The implementation of the tariffs has set off a day of anger, retaliation, and market unease. Global markets fell after the steep U.S. tariffs on China, Canada, and Mexico went into effect. Businesses have been scrambling to contain the fallout from the tariffs, which have disrupted supply chains and increased costs for consumers and producers alike.

In response to the tariffs, Wall Street's losing streak deepened, with stocks falling sharply in the aftermath of the announcement. However, Commerce Secretary Lutnick suggested that the U.S. may be open to a compromise, stating that the U.S. would likely meet Canada and Mexico "in the middle" on tariffs. This potential compromise could help to ease tensions between the U.S. and its North American neighbors and mitigate the economic impact of the tariffs.