Cnn
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If you don’t like President Donald Trump’s tariff policy, wait a minute.
Just after the stock market has it second freak-out in a row, just after businesses around the country planned “What are we go to do Now” Board Meetings, JUST AFTER AFTER AND CHINA RETALIES OF THEIR ONDER, JUST AFTER REPUBLICAN MEMBLICERS PLANEED TO TRANSEED TO TRANSEED TO TRANSEED TO TUMEADED TO TUMED DIAL DOWN ITS TRADE Policy, Just After the International Chamber of Commerce Warned of a Great-Depression-like Economic Catastrophe, the Trump Administration Appeared to Mind on Its Massive Tariffs in its largest trading partners.
Maybe we’ll see.
Trade Secretary Howard Lutnick on Tuesday night made a stunning statement: Canada and Mexico had blown up his phone all day, and he believes Trump is “probably” ready to announce Wednesday that he will meet the neighboring nations of America in half of the fees.
“I think he will work with them,” Lutnick said in Fox Business on Tuesday. “It will not be a pause, none of those pauses. I think he will understand, you do more, and I will meet you in the middle in a way.”
On Wednesday, in an interview with Bloomberg, Lutnick explained that Trump is “thinking about a plan” that he will set and later announce this afternoon that he can hold tariffs at 25% in Mexico and Canada, but may include certain exceptions of products, including vehicles.
“The president makes to make the decision,” Lutnick said. “There will be some categories that will be left out. It can be autos. “The shares of GM, Ford, Toyota, Honda and Stellantis, which have been shocked by the tariffs over the past few days, shot higher in the morning trade on Wednesday.
Lutnick had left the door open for a return to fees for days. Even while Trump insisted that tariffs come into force in full force in Mexico and Canada on Tuesday, Lutnick had suggested in the cable network interviews that perhaps some fees would come into force, or perhaps the percentage would be lower to begin.
No. Trump at midnight Tuesday morning approved 25% massive tariffs across the board for all goods from Mexico and Canada (except Canadian energy, which received a lower tariff). He also added 10% to existing fees for Chinese goods.
Wall Street was seriously unhappy – the dow fell 1.300 points in two days. Business leaders, a contingent that has mainly supported Trump, spent hours checking in press releases and CNBC.
The members of the Trump’s own party, who were listening to them from their constituents, begged the administration to return. White House Headquarters Susie Wiles and other senior councilors were on the phone with Congress members “all day,” said a senior CNN administration official, with some of the most vocal concerns coming from Congress members representing agriculture and production sectors.
May have worked. We’ll see. Trump is scheduled to speak to Canadian Prime Minister Justin Trudeu on Wednesday morning, a person acquainted with the call told CNN. But more details of a commercial compromise must be processed before leaders speak, CNN Canadian industry and government resources say.
Among the issues to be processed: enhanced border security provisions and tariff exemptions for everything that is in accordance with the USMCA Free Trade Treaty.
The shares are gathering in the morning in the trade in front of the market.
We’ve been here before.
Trump campaigned with steep tariffs on the first day, but he failed to hand over that promise. Instead, he signed several executive actions on his first day in the office ordering his administration to investigate whether to follow fees for a wide range of goods. But at a signature ceremony, Trump announced that 25% tariffs in Canada and Mexico would come on February 1.
Then came February 1, and instead of the promised tariffs, Trump announced that the fees would come on February 4. Then, on the eve of the tariffs, Trump announced monthly delays on Canadian and Mexican tariffs after both countries sent delegations to negotiate, offering minor increases in existing border security and promises to take more actions to limit Fentanyl Crossing to the United States.
Tariffs for China entered the country February 4 – but not at the 60% level Trump had promised in December. 10% tariffs came with a startling turn: elimination of de minimis exemption, a void that allows goods worth less than $ 800 to come above the border without task. These packages are numerous and large for customs officials to scan fees.
The next day, the US Postal Service banned all shipments of packets from China from entering the United States because it was unable to respect the new trade policy. But a few hours later, the de minimis exemption was again – temporarily – until the Department of Trade could determine how to police it.
Then, Trump promised a “big”, as he called it: reciprocal tariffs – matching the duties’ fees for the dollar.
On the contrary, the plan, as it was, that Trump announced at the Oval office on February 13 of much fanaticism, consisted of a memorandum of unclear words that provided some concrete details and no real time frame for those fees to begin with. Finally, the time limit – April 2 – became clearer, but the fees that would be applied and the places that would be subject to mutual tariffs were once left by a rat. Trump has navigated autos, microcyps, pharmaceuticals and lumber, but the specifics remain scarce. The shares increased that day as investors celebrated a tariff policy that seemed to be very biteless.
Trump also announced the steel and aluminum tariffs that are set to enter March 12th. But they do not represent a significant increase in what was already in the country.
And then March 3 approached, and the president who cried tariffs was expected to announce some sort of return, pause, delay or tame the tax.
Instead, to Wall Street’s surprise, additional fees were put in place. At least for now.
The back and forth has created instability in Wall Street, confusion for consumers and massive amounts of uncertainty for businesses, which are paralyzed by their inability to plan for what is other. Trump in his joint speech at Congress on Tuesday evening admitted that tariffs are non -propullary and can cause pain. In one of his most tangible moments during the speech, Trump begged for patience, asking farmers who could be hurt by the vengeful fees of “hold with me”, and said “there will be little concern”.
Now, Wall Street is celebrating Lutnick’s good good news. But it is unclear how long the investors will have to celebrate until the next trip to the joyous race begins.