By Suresh Unnithan
US President Donald Trump has taken a ‘U’ from his earlier decision on reciprocal tariff imposed on Canada and Mexico. Trump has, earlier on Thursday signed an order on the rollback of taxes imposed on both the countries. Canada and Mexico are two major trade partners of the US and any decision to introduce reciprocal taxes against these trade partners is likely to impact the American Economy. However, Trump had announced that his administration would impose reciprocal tax on Indian imports from Aril 2 this year.
It is the second time in two days that Trump has rolled back his taxes on imports from the US’s two biggest trade partners, measures that have raised uncertainty for businesses and worried financial markets.
On Wednesday, he said he would temporarily spare carmakers from 25% import levies just a day after they came into effect.
In fact both Mexico and Canada had sharply reacted to Trump’s move to impose reciprocal tariff and asserted that they will retaliate US move in the same coin imposing similar, if not more, taxes on goods imported from America.
However Mexican President Claudia Sheinbaum thanked Trump for the move to freeze the imposition of reciprocal tariff. Canada’s finance minister, responding to the US decision, said the country would also hold off on its threatened second round of retaliatory tariffs on US products.
On Tuesday, hours after President Donald Trump imposed 25% tariff on imports, Canadian Prime Minister Justin Trudeau had declared “Today the United States has launched a trade war against Canada. Its closest partner and ally, its closest friend,” and announced reciprocal tariffs on the United States.
