US backtracks on Canada-Mexico tariffs in latest sharp shift on trade

With the constant barrage of geopolitical news - the tariffs on and then off again - confidence is getting a little bit leaky and it's not surprising sentiment is not great,

said Jack Janasiewicz, portfolio manager at Natixis Investment Managers Solutions in Boston

Kevin Bradyformer House Ways and Means Chair

Leaving this agreement or allowing it to expire will have a very damaging impact on millions of American workers and families,

Brady said

Maurice Obstfeldamerican economist

It is low national saving coupled with robust investment that drives the U.S. external deficit,

Maurice Obstfeld, a senior fellow at the Peterson Institute for International Economics, wrote in Financial Times

My expectation is the president will come to the agreement today that USMCA-compliant goods will not have a tariff for the next month until April 2nd,

Mr Lutnick said

With 25 per cent tariffs, it blows a complete hole in the trade agreement,

Verheul said Wednesday

It’s likely that it will cover all USMCA-compliant goods and services, so that which is part of President Trump’s deal with Canada and Mexico, are likely to get an exemption from these tariffs,

commerce secretary Howard Lutnick told CNBC on Thursday

The uncertainty created by rapidly shifting policy pronouncements can damage investment in particular and hurt the economy,

said Bill Sterling, global strategist at GW&K Investment Management

Canadians think the U.S. is no longer a reliable trading partner,

Verheul said at the Washington launch of the coalition

The fog of confusion is getting thicker by the moment unfortunately,

said Mark Malek, chief investment officer at SiebertNXT in New York

Justin Trudeau is using the tariff problem, which he has largely caused, in order to run again for prime minister”.

He did not mention relief for Canada, instead claiming

Massive Trade Deficit with the World, just announced, compliments of Sleepy Joe Biden! I will change that!!!

Trump posted Thursday morning on Truth Social

Other Mexican corporate sectors face moderate to low exposure due to diversification or alternative markets,

the agency said

We’ve had two days of volatility in the markets, and everybody’s hair is on fire,

Navarro said

Rand Paulsenator

The problem with using them as a negotiation also is that they negotiated: Mexico gave them something, and then they still put them on,

Paul added

Businesses rely on stability and certainty in order to innovate and compete,

Johnson said

It’s the greatest show on Earth. We’ll put tariffs on tonight, but tomorrow we’ll tell you we may negotiate and take them off,

a person close to the administration, granted anonymity to discuss internal conversations, told POLITICO

Karoline Leavittwhite House press secretary

Last night the president told the truth, and he was realistic, and he level set with the American people,

Leavitt said

If you put a gun to his head, Lutnick’s on the no-tariff side, believe it or not,

the person said

And the United States will not be doing that any longer. We’re not going to do it any longer,

he said

There's relief and optimism to some degree, mainly because there's this chance that the tariffs might not go fully as in theory with the U.S. maybe considering some exemptions,

said Quasar Elizundia, research strategist at Pepperstone, comparing the situation to the one-month reprieve given in early February