When the Supreme Court killed his favorite tariffs in February, President Donald Trump rolled out temporary import taxes to replace them. But those stopgap levies expire in less than three months. Now the administration is scrambling to put more durable tariffs in place to keep revenue flowing into the U.S. Treasury and to shore up the president's protectionist wall around the American economy. Starting this week, the government will begin hearings in two investigations — one on countries that lag in enforcing bans on forced labor, another on overproduction — that will likely lead to a new round of U.S. tariffs.
Canada is dropping retaliatory tariffs to match U.S. tariff exemptions for goods covered under the United States-Mexico-Canada trade pact. Prime Minister Mark Carney said Canada will include the carve-out that the U.S. has on Canadian goods under the 2020 free trade deal that shields the vast majority of goods from the punishing duties. The move is designed to reset trade talks between the two countries. The USMCA is up for review in 2026, and Carney called the trade pact a unique advantage for Canada at a time when it is clear that the U.S. is charging for access to its market.
By ELAINE KURTENBACH, LORNE COOK and DAVID McHUGH AP Business Writer
Updated
The impact from U.S. President Donald Trump's blast of tariff hikes is reverberating across world markets as America's trading partners puzzle over whether there is room for negotiating better deals. China struck a note of confidence even as markets in Hong Kong and Shanghai tumbled. South Korea and Pakistan say they're planning to send officials to Washington to see what might be done to soften the impact. Malaysia's Trade Minister said his country will seek this week to forge a united response among Southeast Asian nations to the sweeping U.S. tariffs.
