Trump Suspends Tariffs on Canada and Mexico for 30 Days

U.S. President Donald Trump has announced a 30-day suspension of tariffs on Canada,
which were originally set to take effect at a 25% rate on Sunday,
according to Canadian Prime Minister Justin Trudeau.

Contents:

Trump
China
The Federal Reserve

Trump

In a post on X (formerly Twitter), Trudeau stated:
“I had a good call with President Trump,” noting that the suspension came after
Canada pledged to stop the flow of the deadly drug fentanyl into the United States.

The decision followed a similar announcement regarding Mexico,
where the country’s president offered Trump a 30-day suspension of tariffs in exchange for
deploying forces at the border to combat drug smuggling into the U.S.

This announcement came after a day of heightened tensions in both U.S. and global markets,
where fears over protectionist policies triggered a broad sell-off. However, markets recovered some losses:

The Dow Jones ended the session down 122 points.
The S&P 500 fell 0.76%.
The Nasdaq lost 1.20% of its value.

China

Prepares Retaliatory Tariffs on U.S. Imports

China is preparing countermeasures against the United States after Trump’s administration imposed new tariffs on Chinese imports last weekend.

According to news reports released Tuesday morning, China is planning to impose tariffs on certain U.S. energy imports,
including coal and liquefied natural gas (LNG), with a 15% duty on these products.

Additionally, reports indicate that Beijing is considering imposing further tariffs on U.S. oil and agricultural machinery,
in response to Trump’s trade policies, which have targeted multiple countries—particularly China—in an effort to improve the U.S. trade balance.

The Federal Reserve

Chicago Fed President: Caution Needed in Cutting Interest Rates Amid Rising Uncertainty

Austan Goolsbee, President of the Chicago Federal Reserve, stressed that the central bank should exercise caution
when considering further interest rate cuts, given the rising uncertainty caused by Trump’s policies.

In a radio interview on Monday, Goolsbee explained that policymakers must act wisely
when determining the pace of rate reductions, highlighting the potential risk of inflation rebounding—as reported by Bloomberg.

He also emphasized that evaluating the Federal Reserve’s approach to the impact of tariffs remains a significant challenge, as it is difficult to distinguish whether inflation is rising due to stronger economic activity or if it is merely a temporary effect of escalating trade tensions.

Trump Suspends Tariffs on Canada and Mexico for 30 Days

Trump Suspends Tariffs on Canada and Mexico for 30 Days

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