Trump backs off from import tax hike decision

WASHINGTON: U.S. President Donald Trump has temporarily halted his plan to impose tariffs on imports from Mexico and Canada for a month.

Instead of increasing tariffs, Trump has signed an agreement allowing additional imports from both countries. This marks the second time in two days that the U.S. has reversed its stance on trade with its key partners, raising concerns in the financial sector.

Following the decision, Mexican President Claudia Sheinbaum expressed gratitude, while Canada’s trade minister announced that Canada would also suspend its planned tariffs on U.S. goods.

Canadian Prime Minister Justin Trudeau emphasized that a trade war between neighboring allies would be detrimental to both countries.

The move comes after a sharp downturn in the U.S. stock market on Thursday, prompting Trump to reconsider his decision.