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Canadian Economy and Markets

It was another roller-coaster week in US President Donald Trump’s trade war as tariffs against China came into force while Mexico and Canada were given a temporary reprieve.

Here is what happened this week and what’s looming in the coming weeks:

– North American standoff –

Trump unveiled 25-percent tariffs on Canadian and Mexican goods on February 1, with a lower rate of 10 percent for Canadian oil.

But hours before they were due to take effect on February 4, Trump agreed to delay the move for a month.

Fast-forward to March 4: the tariffs come into force, hitting imports from Mexico such as avocado or tomatoes and Canadian goods such as lumber.

Three days later, Trump gave the two countries another one-month delay, this time on products covered under the United States-Mexico-Canada Agreement (USMCA) — a pact that the US leader signed into law during his first term in office in 2020.

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