How the International Tariff Landscape is Shaping Post-Trump’s ‘Back and Forth’

Major upheaval in international markets has been caused by President Trump’s ‘back and forth’ regarding the imposition of tariffs. Last week, the U.S. partially suspended tariffs on certain goods from Mexico and Canada after market declines and pressure from companies directed at President Trump, as his unpredictable trade policy strained relations with allies and sparked recession fears. Specifically, Trump gave their neighboring and largest U.S. trading partners a one-month reprieve from 25% tariffs on a range of goods, preparing for a new standoff by April 2, 2025. This marks the second time within a month that Trump has backed down on tariffs concerning Mexico and Canada, highlighting the uncertainty around his trade policy, while increasing tariffs on Chinese products and proceeding with plans for broader tariffs to be imposed on several countries next month. However, the tariff suspension by Trump on Thursday (February 27, 2025) does not resolve trade tensions in North America, according to The Wall Street Journal. Goods continue to be affected by new tariffs not covered by the USMCA. Canadian Prime Minister Justin Trudeau stated that Canada might face a trade war with the U.S. ‘in the near future.’ Despite this, private communication between Trudeau and Trump was described as ‘productive’ and ‘constructive,’ though it reportedly included strong language. Trump accused Trudeau of using the tariff issue for re-election purposes. Meanwhile, tariffs have impacted various sectors, leading to stock market declines, technology sector setbacks, and concerns over an impending recession. The justification for tariff suspension remains unclear, sparking confusion among lawmakers and financial markets alike.