Significant changes to the impending tariffs announced by President Donald Trump occurred Monday as both Canada and Mexico were granted a pause.
However, tariffs on China were slated to begin early Tuesday.
Just hours before a trade war was set to begin, Mexico and Canada received a 30-day break from tariffs, which didn’t just affect Wall Street but also set the tone for what could be a crazy couple of months, according to transportation expert and DePaul University professor Joe Schwieterman.
“I’ve been watching transportation all my life, and I don’t recall a situation like this…where suddenly all the rules change about manufacturing, production could change in an instant..” he said. “There was full-blown panic there.”
Mexico’s President Claudia Sheinbaum made concessions along the border; She agreed to place 10,000 soldiers permanently on Mexico’s side of the border to address drug trafficking, specifically fentanyl.
While talks continue, Canada’s Prime Minister Justin Trudeau said he too would beef up border security, including $1.3 billion for border reinforcement with 10,000 frontline personnel.
“There’s a shoot from the hip element – you see both the U.S. and response of other countries,” Schwieterman said. “Certainly woke up the world.”
Still, the deadline for 10% tariffs on China remains, which experts say can affect you directly.
“Definitely be affected almost immediately on higher price of goods for everything,” the professor said. “There simply isn’t a way for the U.S. to pick up production offset by fairly high tariffs.”
Tariffs have been around for decades and are collected by U.S. Customs on everything from cars to electronics and avocados. The U.S. imports four million barrels of Canadian oil daily. The National Association of Home Builders found more than 70% of the imports its members rely upon — lumber and plywood — come from Canada and Mexico.
In Chinatown on Monday, shoppers were expecting to plunk down more money.
“I need to support Canadian, Mexican and Chinese businesses right now,” said shopper Xavier Richards.
The tariff uncertainty is far from over.
“We have several more chapters that are gonna happen before this settles down,” Schwieterman said.