Another one-month reprieve will solve as much as the last one-month reprieve. For those keeping score, nothing.
No Breakthrough, Partial Tariff Rollback Anyway
The Wall Street Journal has Live Updates on Tariffs.
One Month Extension
President Trump is granting a one-month exemption for the big three U.S. automakers from tariffs he imposed on Mexico and Canada, the White House said Wednesday. “The president is happy to do it,” White House Press Secretary Karoline Leavitt said.
The request came from the heads of Ford Motor Co., General Motors Co. and Stellantis NV, she said.
Trump Rebuffs Canada on Tariffs
President Trump appeared to shut the door on any tariff relief for Canada, saying he has not seen enough action on curbing the flow of fentanyl.
“Justin Trudeau, of Canada, called me to ask what could be done about Tariffs. I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped,” Trump wrote Wednesday on social media.
Commerce Secretary Howard Lutnick had raised the prospect of an easing of the 25% tariffs Trump imposed this week on Canadian and Mexican imports. His comments helped stabilize markets, though Trump’s words may throw that back into doubt.
A 25-Percent, 24-Hour Tariff Clown Show
Yesterday, I commented A 25-Percent, 24-Hour Tariff Clown Show, Trump May Roll Back Tariffs Tomorrow
Trump’s tariff nonsense is getting beyond ridiculous.
On Fox News US Commerce Secretary Lutnick says President Trump could roll back Canada and Mexico tariffs as soon as tomorrow.
Erica York at the Tax Foundation responded “It would be better for the economy if the tariffs are short lived, but unfortunately, removal won’t undo all the damage to business relationships, economic activity, and the reliability of the US as a trading partner and place to do business.”
The amusing thing is Trump said yesterday “There’s No room left for negotiations.”
24 hours later, apparently there is. But who knows, by tomorrow maybe there won’t be.
Canada and Mexico Respond With Very Different Rhetoric
Also note, Canada and Mexico Strike Back at Trump’s Tariffs With Very Different Rhetoric
In contrast to Canada, which responded forcibly, Mexico will announce targeted measures Sunday. The delay that suggests Mexico hopes to de-escalate the trade war set off by U.S. President Donald Trump.
President Claudia Sheinbaum said she and Trump had agreed to have a call this week, most likely Thursday, “so we are going to wait.”
An Issue of Trust
Trump has proven he may not honor any deal he signs. That is the unfortunate bottom line, and there will be a huge associated cost.
USMCA was up for renegotiation in June of 2026. But Trump couldn’t wait.
If Trump wanted drugs to be part of the deal, then he should have put drugs in the deal.
Mish Guidelines on Dealing with Trump
Given the total lack of trust anyone can possibly place on Trump honoring any deal, the best approach is along these lines:
1) Tell Trump how brilliant he is, 2) offer him something that costs little but sounds great and lets Trump brag, and then 3) he either takes it or not. 4) Respond accordingly.
What Should Canada Do?
The answer, of course is nothing, but make it sound like something big, just as my guidelines suggest.
Q: Why?
A: There is no point in offering Trump any major concessions because they will never be enough.
Besides, it is clear Trump may not honor any deal he makes anyway. What’s the point in giving concessions to someone willing to break his own treaties ratified 89-10 by Congress?
This is where we are now. And if you are the least bit honest, you will admit that instead of cheering and waving a flag.
It seems Mexican President Claudia Sheinbaum has figured most of this out. Congratulations!
This clown show has another month-long reprieve, albeit only for autos. Maybe Trump comes to his senses. But don’t count on it.
Trust is destroyed anyway. And that’s irrecoverable.
Related Posts
March 3: Welcome to the Recession, Trump Hits Canada and Mexico with 25 Percent Tariffs
“No room left” for negotiations says Trump.
And now US Commerce Secretary Lutnick seeks negotiation. Fancy that.
March 4, 2025: A Global Trade War Has Started – Global Recession Will Follow
The most significant global trade war since Smoot-Hawley and the Great Depression is underway.
Finally, we have not yet felt the hit on small manufacturers do to extremely unwise tariffs.
For discussion, please see How One Small Business Owner Is Coping With Trump’s Tariffs
Fifty-four percent of small businesses polled said that tariffs would negatively affect their companies, while just 11 percent said they would benefit.
Please read the above post and multiply it by tens of thousands of small businesses.
But don’t worry (if you are a farmer), because Republican Senators are ready to bail you out.
Screw the small businesses dependent on steel or aluminum. What a sorry hoot.