Trump eases tariff pressure on Canada, Mexico with new exemptions
U.S. President Donald Trump has signed orders significantly expanding the list of goods exempted from his newly imposed tariffs on Canada and Mexico.
It is the second time in two days that Trump has rolled back his taxes on imports from America's two biggest trade partners, measures that have raised uncertainty for businesses and worried financial markets, News.Az reports, citing foreign media.
On Wednesday, he said he would temporarily spare carmakers from 25% import levies just a day after they came into effect.
Mexican President Claudia Sheinbaum thanked Trump for the move, while Canada's finance minister said the country would in turn hold off on its threatened second round of retaliatory tariffs on US products.
Canadian Prime Minister Justin Trudeau said on Thursday morning he had had a "colourful" conversation about tariffs in a phone call with Trump.
The US president used profane language more than once during Wednesday's heated exchange, according to US and Canadian media reports.
Trudeau told reporters that a trade war between the two allies was likely for the foreseeable future, despite some targeted relief.
"Our goal remains to get these tariffs, all tariffs removed," he said.
A first round of Canadian retaliation targeting C$30bn ($21bn, £16bn) of US goods is already in effect.
The trade war tensions have rattled markets and raised fears of economic turbulence.
On Thursday afternoon, the leading US stock indexes were all lower, with the S&P 500, which tracks 500 of the biggest American companies, ending down nearly 1.8%.
In signing the orders, Trump dismissed the suggestion that he was walking back the measures because of concerns about the stock market.
"Nothing to do with the market," Trump said. "I'm not even looking at the market, because long term, the United States will be very strong with what's happening."
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