Donald Trump’s administration has backtracked further from its threat to impose sweeping 25 per cent tariffs on Mexico and Canada, in a major climbdown from its aggressive trade agenda.
In the second U-turn in two days, the US president signed an executive order on Thursday saying that all goods that met the rules of a 2020 free trade deal with the US’s neighbours would be granted a one-month reprieve from the duties.
The move caps a tumultuous week that has roiled markets and frayed diplomatic relations between the US and its largest trading partners. On Wednesday, Trump had said that just carmakers compliant with the USMCA would be granted a month-long carve-out.
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