President Trump on Thursday signed an executive order pausing tariffs on some goods from Canada and Mexico for another month.
It was the latest maneuver in a weeks-long back-and-forth between the U.S. and its neighbors over trade policy that rocked global markets. The president on Thursday said the market impact was not a factor in his decision.
"I'm not even looking at the market because long term the United States will be very strong," President Trump said. "Companies and countries that have ripped off this country, our country, our beloved USA, and they're not going to be ripping us off anymore. So, you know, I think that has an impact on the market."
The Dow Jones, S&P 500, and NASDAQ all saw sharp drops on Tuesday, the same day President Trump levied 25% tariffs against Canada and Mexico, and 20% against China, citing the flow of illegal fentanyl into the U.S.
In a speech to Congress Tuesday, he announced that reciprocal tariffs would kick in on April 2.
"And whatever they tariff us, other countries, we will tariff them. It's reciprocal, back and forth," the president said.
The speech came on the same day that President Trump used an economic emergency declaration to enact 25% tariffs on nearly all goods from Canada and Mexico, and 10% tariffs on energy-related imports from Canada, including oil, natural gas and electricity. In a separate executive order Monday, President Trump also increased the tariff on all goods imported from China to 20%.
All three countries quickly announced they would take retaliatory action against the tariffs. The overnight trade war has eliminated all gains made in the S&P 500 benchmark index since President Trump took office in January, and trade experts and retail CEOs have warned that U.S. consumers will now pay higher prices, potentially in a matter of days.
"There'll be a little disturbance, but we'll be okay with that," President Trump said.
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But on Wednesday, the White House said it would give U.S. automakers a one-month reprieve from import tariffs so they are not at an "economic disadvantage."
The goal, the White House said, was for automakers to shift their production to the U.S.
"He told them that they should get on it, start investing, and shift production here where they will pay no tariff. That's the ultimate goal," said White House Press Secretary Karoline Leavitt.
Then on Thursday, President Trump said he had spoken with Mexico's President Claudia Sheinbaum and had agreed to a pause on tariffs on goods covered by the U.S.-Mexico-Canada Trade Agreement, and later signed an executive order to include goods from Canada.
A senior administration official told reporters on Thursday that Canada and Mexico may avert the tariffs after April 2 if they show progress on curbing fentanyl trafficking.
But President Trump told reporters Thursday that automakers wouldn't get any further breaks.
"I said I'm gonna do it, but don't come back to me after April 2. I don't want to hear from you after April 2," President Trump said.
On Friday, President Trump said he is considering massive reciprocal tariffs on dairy, lumber and other imports from Canada.
President Trump says Canada has been "ripping off" the United States.
"We find [Canada] charging us over 200% for dairy outcomes," President Trump said. "They'll be met with the exact same tariff unless they drop it."
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