The markets sank back toward session lows on Thursday after President Trump announced that tariffs on goods and services from Mexico that fall under the US-Mexico-Canada trade agreement (USMCA) would be delayed until April 2.
However, the president did not say the same about 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. This Agreement is until April 2nd,” Trump wrote on Truth Social.
“I did this as an accommodation, and out of respect for, President Sheinbaum,” he added.
^GSPC ^IXIC ^DJI
The omission of Canada appears to have spooked the markets. The Dow Jones Industrial Average (^DJI) fell more than 1% while the S&P 500 (^GSPC) dropped 1.8%. The tech-heavy Nasdaq Composite (^IXIC) lost more than 2%.
Earlier on Thursday, Trump wrote, “Believe it or not, despite the terrible job he’s done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister. So much fun to watch!”