On Wednesday, President Trump of the United States announced a global benchmark tariff and imposed higher equivalent tariffs on dozens of countries. On Thursday, leaders of some countries or regions expressed their intention to reach agreements to reduce tariffs on products exported to the US.
Meanwhile, as tension in the European and American markets spreads, some major trading partners including the European Union and the United Kingdom have stated their readiness to respond to the US with tariffs and other trade measures.
President Trump issued an executive order imposing a minimum 10% benchmark tariff on all US trading partners, and several countries were individually designated as high tariff countries to address trade imbalances. The 10% benchmark tariff is seen as a necessary measure by the Trump administration to combat trade fraud.
With the significant impact of Trump’s statement being felt around the world, global markets plummeted, and leaders of many countries responded to Trump’s tariffs, with the business community also reacting.
On Thursday, when asked about the market reaction, Trump told reporters, “I think things are progressing very smoothly.”
“You’ve never seen anything like this. The market will prosper. Stocks will prosper. This country will prosper.”
Regarding the tariff issue, Trump said, “Other countries around the world are eager to see if there is a way to reach an agreement.”
Canadian Prime Minister Mark Carney said on Thursday that Canada will retaliate against the US by imposing equivalent tariffs on American passenger cars and a 25% tariff on cars not compliant with the USMCA (United States-Mexico-Canada Agreement).
He stated that the retaliatory tariffs will only apply to finished automobiles and will not affect car parts from Mexico. The exact number of cars that will be affected is not clear, but Carney mentioned that the tariffs could bring in $5.6 billion in revenue, which will be used to assist Canadian workers and companies affected by Trump’s tariffs.
The Prime Minister mentioned that there is no scheduled meeting between him and President Trump, but he will speak with Trump again “when the time is right.”
The Canadian government also announced that purchasing Canadian-made cars will be exempt from tariffs.
Mexican President Claudia Sheinbaum stated on Thursday that Mexico was exempt from US “additional tariffs” due to the “good relationship” she maintains with the Trump administration.
“I believe all of this is related to the good relationship we have built between the Mexican government and the US government, which is based on respect for our sovereignty, cooperation, and coordination,” said Sheinbaum.
On Wednesday, Trump announced a global “equivalent” tariff – applying a 10% benchmark tax on imported products from all countries except Mexico and Canada.
He also declared that a 25% tariff on all foreign-made cars would come into effect from midnight, as well as the US entering a state of economic emergency to initiate import taxes.
Sheinbaum discussed the car import tariffs, noting that they particularly affect her country.
“We are still in negotiations,” she said. Sheinbaum also pointed out that she has had “multiple phone calls” with Trump regarding the tariffs.
Mexico’s Economy Minister Marcelo Ebrard Casaubón also mentioned during a news conference that both he and the President had serious concerns about the continuity of the USMCA (United States-Mexico-Canada Agreement), but now they have confirmed its continuation.
Sheinbaum expressed…