President Donald Trump rolls back some of the rates imposed on Canada and Mexico.
Pers secretary Karoline Leavitt announced that the president gives a one-month tariff exemption for car imports.
'We spoke with the Big Three Auto dealers. We are going to give an exemption of one month about all the cars that come via USMCA. Mutual rates are still in force on April 2, “she said during the press conference on Wednesday.
That is one day after Trump met the 'Big Three' car manufacturers – General Motors, Ford and Stellantis.
On Tuesday, the US imposed 25 percent rates on all the well -imported from the two neighboring countries this week that the country fluctuates in a trade war.
Trader Howard Lutnick appeared on Bloomberg on Wednesday morning, where he said the president is considering alleviating some rates.
“There will be rates, let's be clear, but what he thinks about is which parts of the market that may be possible, maybe he will consider giving them relief,” Lutnick said.
The secretary of the trade said that it could go until they are on April 2.
The Trump administration seemed ready to blink first when the markets took a huge tumbling this week and Canada and China announced mutual rates.
But the trade war between the American and large trading partners is far from over.
“I don't want anyone to forget, April 2 is the day we announce our mutual rates around the world,” Lutnick noted.
Commerce Secretary Howard Lutnick After President Trump's speech to a joint session of the congress on Tuesday
When asked for extra clarity about the timing of an announcement, Lutnick suggested that it would be Wednesday afternoon.
“The president listens to the offers from Mexico and Canada. He is thinking about doing something in the middle. He thinks about it. We are talking about it, “said Lutnick.
He said he expected that it is “not 100 percent of all products and not – somewhere in the middle.”
Lutnick claimed that Canada and Mexico are working hard to tackle drug trafficking on the border. He argued that it is'No trade war, this is a drug war. '
But Canadian officials seem less willing to meet halfway through each other and indicated that they shared that with American counterparts.
'We are not interested in a sort of reduction in rates. We want to respect the free trade agreement with the United States and Mexico, “said Canadian Finance Minister Dominic Leblanc in an interview with the Canadian Broadcasting Corporation.
Canada responded to the American rates by announcing that mutual rates would impose $ 30 billion in products immediately and said that more would come within 21 days.
The Canadian Prime Minister Justin Trudeau called Trump those rates imposed a 'very stupid thing to do'.
Canadian Prime Minister Justin Trudeau announces mutual rates on March 4
Trump admitted that the rates for trading partners would cause a 'minor disruption' during his speech to a joint congress session on Tuesday 4 March
China also announced 10 and 15 percent extra rates for some American goods. The president of Mexico said that her country would announce his mutual rates on Sunday.
Trump spoke on Tuesday evening with a joint session of the congress that the rates for the most important trading partners would cause a 'small disturbance', but he claimed that it will be 'not much'.
