Donald Trump has announced that most goods imported from Mexico and some from Canada are to be exempt from his trade tariff regime for at least four weeks, just days after the charges were imposed.
“We are working hard, together, on the border, both in terms of stopping illegal aliens from entering the United States and, likewise, stopping fentanyl,” the president posted on his Truth Social platform after first relaxing his sanctions against Mexico.
He often gives both issues as reasons for the tariffs.
The latest climbdown came after he surprised financial markets 24 hours earlier by waiving tariffs against carmakers following pleas from motor industry bosses.
The White House said that 62% of Canadian imports would still be subject to 25% tariffs because they were not compliant with a trade deal – USMCA (US Mexico and Canada) – struck in 2020.
News that Canadian goods which met the USMCA criteria were being spared tariffs until 2 April followed hours after the same concession was agreed between Mr Trump and his Mexican counterpart.
A tariff of 10% was to remain on potash – a fertiliser used by farmers – and Mr Trump added that the auto tariffs would definitely return next month.
The White House revealed some details. Parts due to flow into the US from Mexico and Canada as part of the manufacturing supply chain would not qualify for tariffs so long as they complied with the USMCA deal.
‘Rules of origin’ guidelines under the agreement allow goods to move between the three countries tariff-free if they qualify with a designation that they were made in North America.
US commerce secretary Howard Lutnick told Sky’s US partner network CNBC that, taken together, more than half of usual cross border trade volumes would be exempt under the expanded concessions.
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3:27
Why are tariffs such a big deal?
He too signalled there were signs of progress in the dispute with America’s closest trading partners, saying each had worked hard to make progress in tackling imports of Fentanyl – blamed for high crime and deaths in US communities.
But Mr Lutnick explained that, as things stand, the reprieve would only last until 2 April when the Trump administration plans to impose reciprocal tariffs – on top of the 25% charges that came into force on Tuesday.
At the same time, Mr Trump is under intense pressure to relax his tariff regime permanently amid a backlash from US firms and financial market investors who fear it is self defeating.
A closely-watched forecast has even suggested that the threats of a trade war were enough to push the US economy into recession before Mr Trump took office.
The dollar has sunk in value and US government borrowing costs have risen on the back of the turmoil.
US stock markets were also feeling the pressure again with the tech-heavy Nasdaq on course to fall by more than 3% on the day.
It is widely expected that the European Union will be next to face tariffs – possibly from 2 April – after Mr Trump threatened action “very soon” just last week.
Commenting on the threat to the eurozone from such a move, the president of the European Central Bank Christine Lagarde said on Thursday: “Just the threat of those tariff increases and potential retaliations are putting a brake on – on investment, on consumption decisions, on employment, hiring, all the rest of it.”
While Mr Trump has not issued a specific threat against the UK, her counterpart at the Bank of England Andrew Bailey told a committee of MPs on Wednesday that the US should work “multi-laterally” rather than bilaterally to resolve its disputes.
Donald Trump has responded after Elon Musk said some of his recent social media posts about the US president “went too far”.
The Tesla and SpaceX boss shared a series of posts on his X social media platform last week, including one which described Mr Trump’s sweeping tax and spending bill as a “disgusting abomination”.
Posting on X this morning, Mr Musk said: “I regret some of my posts about President @realDonaldTrump last week. They went too far.”
In response, the president is quoted as telling the New York Post: “I thought it was very nice that he did that.”
The publication said it spoke to Mr Trump in a brief phone conversation.
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19:32
Musk and Trump’s bust-up
The White House dismissed Mr Musk’s Epstein claims at the time, with press secretary Karoline Leavitt saying: “This is an unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill [a Republican tax and spending bill] because it does not include the policies he wanted.
“The president is focused on passing this historic piece of legislation and making our country great again.”
Mr Musk did not specify which posts he regretted.
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1:58
Could the Musk-Trump fallout stall US space goals?
In another post last Thursday, Mr Musk attacked Mr Trump’s tariffs, saying they “will cause a recession in the second half of this year”.
In response, Mr Trump, in an interview with ABC News, said Mr Musk had “lost his mind”. He also threatened to cancel government contracts with the businessman’s companies and said he had asked the billionaire to leave the White House.
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4:02
Trump and Musk’s feud explained
But yesterday, Mr Musk’s father Errol Musk told Sky News’ Moscow correspondent Ivor Bennett: “It’s like any argument. Everybody at some point says I’ll never make up, but then they do later.”
He said the argument likely happened because of “emotions welling out of hand”.
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0:46
Elon’s dad on the Musk-Trump bust-up
“They’ve had five months of intense day and night, hardly any sleep, and anybody who went through that would know your nerves are pretty much shredded after that time.”
He also said his son had texted him to say: “Don’t worry, we’re sorting it out.”
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A curfew has come into force in Los Angeles as officials attempt to “stop the vandalism and stop the looting”.
Mayor Karen Bass said the restrictions will be in force in downtown areas of the city from 8pm to 6am local time (4am to 2pm UK time) – and will likely be repeated in the coming days.
She confirmed that a local emergency had been declared as “we reached a tipping point”, with 23 businesses looted on Monday night.
Ms Bass said “graffiti is everywhere”, with “significant damage” to properties as a result of the protests.
Image: Workers try to remove graffiti after a protest over immigration raids. ICE Pic: AP/Damian Dovarganes
Image: Workers remove graffiti from the Ronald Reagan Federal Building in Santa Ana. Pic: Mindy Schauer/The Orange County Register via AP
Image: A protester marches past businesses being boarded up. Pic: Reuters/Leah Millis
Jim McDonnell, the chief of the Los Angeles Police Department, described the curfew as a “necessary measure to protect lives” as “unlawful and dangerous behaviour” had been escalating in the last few days.
On Tuesday alone, 197 arrests were made by the force, and he warned anyone violating the curfew without a valid reason would be detained.
Residents, people who are homeless, those travelling to and from work, credited media as well as public safety and emergency personnel, will be exempt from the curfew.
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The curfew covers a one square mile section of downtown LA that includes the area where protests have happened since Friday. The city of Los Angeles encompasses about 500 square miles.
Image: Workers board up a store in Santa Ana. Pic: AP/Jae C. Hong
Image: California National Guard soldiers stand at a federal agency building. Pic: AP
Image: Protesters are detained by law enforcement near the federal building in downtown LA. Pic: AP/Eric Thayer
The protests are in response to raids carried out by the US Immigration and Customs Enforcement agency (ICE).
US President Donald Trump has activated 4,000 National Guard troops – the federal reserve force – to protect ICE officers carrying out raids as well as federal buildings in LA, despite objections by California Governor Gavin Newsom, who called the deployments unnecessary, illegal and politically motivated.
Mr Trump also sent 700 marines, who are expected to start operating in the LA area on Wednesday, according to the US Northern Command.
Image: The Ronald Reagan Federal Building and Courthouse in Santa are boarded up. Pic: Mindy Schauer/The Orange County Register via AP
Image: National Guard troops are lined up to protect a federal building in downtown LA. Pic: AP/Eric Thayer
State officials said Mr Trump’s response was an extreme overreaction to mostly peaceful demonstrations, with California senators Adam Schiff and Alex Padilla saying the domestic mobilisation of active-duty military personnel should only happen “during the most extreme circumstances, and these are not them”.
Mr Trump defended his decision in a speech to soldiers at the Army base in Fort Bragg, North Carolina, saying his administration would “liberate Los Angeles”.
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0:49
Trump: ‘We will liberate Los Angeles’
“Generations of Army heroes did not shed their blood on distant shores only to watch our country be destroyed by invasion and third-world lawlessness,” Mr Trump said.
“What you’re witnessing in California is a full-blown assault on peace, on public order and on national sovereignty, carried out by rioters bearing foreign flags.”
Image: A protester is arrested by law enforcement officers in downtown LA. Pic: AP/Eric Thayer
Image: California Highway Patrol officers clash with protesters in LA. Pic: AP/Eric Thayer
Gavin Newsom launched a blistering response in an address on Tuesday evening, saying the deployment of the National Guard without consulting Californian officials was a “brazen abuse of power by a sitting president”.
He said it “enflamed a combustible situation, putting our people, our officers and even our National Guard at risk”.
“That’s when the downward spiral began. He doubled down on his dangerous National Guard deployment by fanning the flames even harder – and the president, he did it on purpose,” Mr Newsom said.
Newsom takes the fight to Trump
California Governor Gavin Newsom’s televised address to the nation felt presidential as he took the fight to the man in the Oval Office, with a series of scorching putdowns.
He made a compelling case that Donald Trump’s extraordinary decision to send troops to LA against his wishes had put the country on the brink of authoritarianism.
He spoke the day after the Pentagon announced 700 marines were being deployed to join 4,000 National Guard troops ordered to the streets of LA by Trump.
But there has been no evidence so far that local law enforcement is being overwhelmed by the size or might of this resistance movement.
The head-to-head between Trump and Newsom is a compelling one.
The governor is known to harbour presidential ambitions for 2028 and is something of a MAGA bogeyman.
Newsom presides over a blue state, the biggest in the country, and is growing his brand with a podcast and – now – Trump has effectively put him in the national spotlight by bringing this political battle to his door.
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The governor accused Mr Trump of choosing escalation and “theatrics over public safety”, as the situation was “winding down” before the president deployed the troops.
Mr Newsom added: “When Donald Trump sought blanket authority to commandeer the National Guard, he made that order apply to every state in this nation.
“This is about all of us, this is about you. California may be first, but it clearly won’t end here; other states are next. Democracy is next. Democracy is under assault before our eyes.”
Image: A man holds a Mexican flag, which has become synonymous with solidarity for migrants targeted in the raids. Pic: AP/Damian Dovarganes
Image: A protester holds up a placard while marching through downtown LA. Pic: Reuters/Leah Millis
Image: People protest against the ongoing immigration raids in Washington, D.C. Pic: AP/Julia Demaree Nikhinson
Homeland Security said on Monday that ICE had arrested 2,000 immigration offenders per day recently, which significantly exceeds the 311 daily average in the fiscal year 2024 under former president Joe Biden.
The protests over the immigration raids have started to spread across the US, with demonstrations in cities like Seattle, Austin, Chicago and Washington, DC.
While chaos in Los Angeles continues, with a curfew in place in the city to prevent further unrest, Donald Trump spent the day hunkered down in a bunker with helicopters soaring above and drones buzzing by at a celebration of the US army’s birthday.
US correspondents Mark Stone in Washington DC and Martha Kelner in LA discuss the parallels between the president’s display of military celebration, and sending troops in to restore law and order against protesters.
Plus, as US and Chinese negotiators meet in London to try and resolve the ongoing trade war between the two nations, Mark and Martha ask what’s at stake.
If you’ve got a question you’d like the Trump100 team to answer, you can email it to trump100@sky.uk.