Canada and Mexico back from the brink on tariffs, China retaliates
04 February 2025
Image: kasto via AdobeStock - stock.adobe.com
Canada and Mexico have both negotiated a 30-day suspension of tariffs that US President Donald Trump had planned to levy on goods imported from those countries.
The US government had signalled that it would introduce 25% tariffs on Canadian and Mexican goods imported to the US from today (4 February).
The move would have had implications for the flow and cost of products and materials used in the construction industry.
However, Mexican President Claudia Sheinbaum reached an agreement with Trump to halt tariffs on Mexico for 30 days, after Mexico agreed to send 10,000 National Guard members to the US border to help stem the flow of migrants into the US.
Canadian Prime Minister Justin Trudeau reached a similar deal after agreeing to reinforce Canada’s border with the US.
However, the US appears to be going ahead with a 10% tariff on Chinese goods. China has announced limited retaliatory tariffs on a range of US products, including 10% on crude oil, agricultural machinery, pickup trucks and large-engine cars.
To read more on how Caterpillar CEO Jim Umpleby views the prospects of increased tariffs on international trade, click here.
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