On Thursday, President Trump exempted from 25% tariffs most of the goods that come from Canada and Mexico under the U.S.-Mexico-Canada Agreement.

The tariffs were implemented earlier in the week, and they will be reinstated on April 2.

Trump announced the tariffs of 25% on Tuesday against the United States’ largest trading partners.

On Thursday, Dan Greenhouse of Solus Alternative Asset Management stated, “If you’re the administration and want to achieve the results they seek, such as refusing fentanyl or lowering border crossings, these tools are in your arsenal.”

Doug Holtz Eakin, president of American Action Forum, did not agree.

He stated, “In the final analysis, taxes are imposed on American businesses and consumers. These taxes are significant. People don’t realize that, if taken as a whole, this tax round would have been roughly four times bigger than what he had done during his first term. The impacts would be significant.”

Holtz Eakin stated that it would add to inflation and slow down economic growth.

He said, “Those things aren’t what the American people want.”

Canada announced earlier in the week that it would impose retaliatory duties of 25%.

A Canadian source said to Reuters that Canada would not respond until the entire Trump amended tariff order had been seen.

Trump announced tariffs in his first week in office after declaring the fentanyl death rate a national crisis. The drug is imported from Mexico and Canada via China.

Justin Trudeau told reporters on Thursday that the United States will be continuing the trade war in the near future. Trudeau will be stepping down as Canadian prime minister Sunday.

Trump has also placed a tariff of 20% on all Chinese products.

Trump had mentioned an exemption for Mexico earlier Thursday, but the new amendment also covers Canada. 

“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” Trump wrote Thursday before including Canada in the exemption.

This agreement is valid until the 2nd of April. This was done as a gesture of goodwill and respect to President Sheinbaum. We have a good relationship and are actively working together to stop Fentanyl and illegal aliens from entering the United States. “Thank you, President Sheinbaum, for all your hard work and cooperation!”