Trump Tariffs Latest News
On Monday 24th February 2025, President Donald Trump announced that when the month-long delay on tariffs on imports from Canada and Mexico expires, (March 4th, 2025), his administration will initiate the promised tariffs. At a White house press briefing President Trump was quoted as saying “The tariffs are going forward on time, on schedule”. In addition it must be remembered that also this month President Trump imposed a blanket tariff of 25% on all imports of aluminium and steel.
A reporter asked the President directly if he felt that Canada and Mexico had done enough in the last month to avoid his tariffs, his answer was somewhat blurry talking about reciprocal tariffs rather than answering the question. Experts suggest that as the President did not answer the question directly and perhaps for Canada and Mexico there is still room to manoeuvre. Communications emanating from the White House confirmed that Mexican and US officials held talks last week and both President Trump and Canadian Prime Minister Trudeau spoke over the weekend.
President Claudia Sheinbaum Pardo of Mexico has announced that she is hopeful of striking a deal with the US administration before the deadline of March 4th, 2025. Prior to President Trump’s announcement on moving ahead with tariffs the Mexican President was quoted as saying “we would need to reach important agreements this Friday. On all of the issues there is communication and what we need to do is to complete this agreement, I believe we are in a place to do it”. Indeed a high placed source within the administration said the fate of the tariffs (25% on Canada and Mexico) was still to be determined.
Elsewhere, the EU (European Union) is expanding the number of goods imported from USA that they will hit with retaliatory tariffs of their own. The union’s trade chief Maros Sefcovic recently met US Trade Representative in-waiting (waiting Senate confirmation), US Commerce Secretary Howard Lutnick, and Kevin Hassett, the Director of National Economic Council. He reported back to the Eu’s ambassadors advising that while they enjoyed a positive atmosphere no negotiations took place, and there is still no real clarity on the administrations intentions on tariffs.
In other news, after President Trump’s remarks on tariffs, the Canadian Dollar, and the Mexican Peso both took a beating on the foreign exchange markets whilst the US Dollar reached a daily high. Elsewhere, Bitcoin which enjoyed a surge after the elevation of Donald Trump to the White House going above USD 100,000 mark has now tumbled to below USD 90,000 after a string of industry setbacks and reaction to the President’s trade tariffs. Since the inauguration of President Trump bitcoin has fallen by circa 20% in reaction to what experts believe is a very combative stance against rivals and allies alike, shaking investor confidence.
Indeed, and unbelievably in a historic move, President Trump instructed the US Ambassador to the United Nations to vote with Russia and North Korea against three United Nations resolutions thereby declining to hold Russia accountable for its invasion of Ukraine. This will inevitably drive a bigger wedge between the United States and its traditional allies especially those on the G7. It would appear that Trump has a deep love for the Kremlin and President Putin, which is totally against the values of his western allies, and together with his tariffs he seem intent on redefining the world order.
The German Chancellor in-waiting, Friedrich Merz has said that Europe is of no interest to Trump, and they should work to create their own defence and prioritize real independence from the United States. Such words coming from the lips of the in-coming German Chancellor would have been unthinkable a few months ago. In fact the President of France Emmanuel Macron has for a number of years been touting a Europe wide defence system. Interesting times, we can only wait and see what geopolitical and economic storms President Trump can throw at the world in the upcoming months and years of his presidency.
