Trump pledges an additional 10% tariff next week. Says Canada/Mexico tariffs still on

Yesterday, Trump said that Mexico and Canada tariffs were delayed until April 2 but then appeared to contradict himself. Now he’s clearing it up with a post on Truth Social that says the Canada/Mexico tariffs are still on while there will be an additional 10% charged on Chinese goods.

The latest:

Drugs are still pouring into our Country from Mexico and Canada at very
high and unacceptable levels. A large percentage of these Drugs, much
of them in the form of Fentanyl, are made in, and supplied by, China.
More than 100,000 people died last year due to the distribution of these
dangerous and highly addictive POISONS. Millions of people have died
over the last two decades. The families of the victims are devastated
and, in many instances, virtually destroyed. We cannot allow this
scourge to continue to harm the USA, and therefore, until it stops, or
is seriously limited, the proposed TARIFFS scheduled to go into effect
on MARCH FOURTH will, indeed, go into effect, as scheduled. China will
likewise be charged an additional 10% Tariff on that date. The April
Second Reciprocal Tariff date will remain in full force and effect.
Thank you for your attention to this matter. GOD BLESS AMERICA!

The US dollar is stronger on this and USD/CAD rose to 1.4425 from 1.4364. S&P 500 futures halved their gains but are still +18 points. The market doesn’t really believe the threat on Canada and Mexico but the one on China is more credible and I think this is the first time he’s talked about an additional 10% tariff on China, though it’s not clear if that ‘additional’ to the ones that have been on since his first term or additional to the one he put on at the start of February.

This article was written by Adam Button at www.forexlive.com.