Trump backs off Mexico, Canada tariffs after market blowback

WASHINGTON, Mar 07 (AFP): US President Donald Trump on Thursday delayed some tariffs targeting Canada and Mexico -- leading Ottawa to halt an upcoming wave of countermeasures -- in moves that bring reprieve to companies and consumers after blowback on financial markets.

Stock markets tumbled after Trump's duties of up to 25 percent took effect Tuesday, as economists warned that blanket levies could weigh on US growth and raise inflation.

But Trump signed orders Thursday to delay the fresh tariffs for Canadian and Mexican imports covered by a North American trade agreement, though he dismissed suggestions that his decisions were linked to market turmoil.

The halt -- which will last until April 2 -- offers relief to automakers.

In the auto sector, parts cross North American borders multiple times during production.

Following talks with the "Big Three" US automakers -- Stellantis, Ford and General Motors -- Washington initially announced a one-month exemption on autos coming through the United States-Mexico-Canada Agreement (USMCA). A White House official told reporters that about 62 percent of Canadian imports will still face the new tariffs, although much of these are energy products hit by a lower rate of 10 percent.