Trump and Trudeau spoke this morning, president weighs reprieve for automakers, Lutnick says
Trump and Prime Minister Justin Trudeau have spoken because the U.S. imposed 25% tariffs on Canada and Ottowa responded with countermeasures, Commerce Secretary Howard Lutnick stated.
“He spoke as we speak to Justin Trudeau this morning, and I used to be on that decision,” Lutnick stated in a Fox Information interview Wednesday afternoon.
Lutnick additionally stated that Trump, after talking with main automakers on Tuesday, “was leaning in the direction of serving to them out for simply this month.”
The tariffs took impact Tuesday, ratcheting up commerce conflict fears and roiling the U.S. inventory market.
Lutnick has steered that Trump, in some unspecified time in the future Wednesday, might announce adjustments to his tariffs on Canada and Mexico that meet each international locations someplace “within the center.”
— Kevin Breuninger
Bloomberg: U.S. weighing one-month delay on auto tariffs
A Ford Bronco at a Ford dealership in Richmond, California, on March 3, 2025.
Bloomberg | Bloomberg | Getty Pictures
The U.S. administration is contemplating delaying tariffs on vehicles from Mexico and Canada by one month, Bloomberg News reported, citing individuals conversant in the matter.
Administration officers met with the heads of Ford, Common Motors and Stellantis on Tuesday, with one other assembly set for Wednesday, the Bloomberg report stated.
Equally, Reuters reported Trump held a call Tuesday with the CEOs of the Massive Three automakers a few potential tariff delay, citing sources.
The report comes after Commerce Secretary Howard Lutnick indicated Wednesday morning that automakers may very well be one of many sectors that sees tariff reduction in a compromise deal.
— Jesse Pound
China appeals to WTO over Trump’s further tariffs
A brand is pictured outdoors the World Commerce Group (WTO) in Geneva, Switzerland, September 28, 2021.
Denis Balibouse | Reuters
China has filed a revised request for consultations on the World Commerce Group over the extra 10% tariffs Trump has imposed, in response to the worldwide physique.
Beijing initially appealed to the WTO on Feb. 4 after Trump imposed his first spherical of 10% levies. Trump has imposed tariffs totaling 20% towards China with the extra duties he enacted on Tuesday.
Consultations are step one within the WTO course of to resolve commerce disputes between nations.
— Spencer Kimball
Bernstein cuts earnings estimates, lowers value goal on Constellation Manufacturers
Bottles of Corona beer, the flagship model of Grupo Modelo are displayed on this illustration taken in Monterrey, Mexico, February 18, 2025.
Daniel Becerril | Reuters
Bernstein minimize its earnings estimates and lowered its value goal on Constellation Brands, the maker of huge alcoholic beverage manufacturers like Modelo, Corona and Pacifico.
“It is official — 25% tariffs on Mexican imports are right here … We minimize our EPS estimates by ~25%, and proceed STZ outperform with a brand new (decrease) goal value of $230,” Bernstein analyst Nadine Sarwat stated in a observe Wednesday. “We’ve got lengthy guided to the affect tariffs must our numbers, and as we speak we take the knife to our mannequin.”
Constellation is essentially the most uncovered identify in Bernstein’s European and American drinks protection universe, with about 84% of fiscal 2025 earnings internet gross sales being tremendous premium Mexican beer imports, she famous.
“Any decision to those tariffs presents significant upside not included in our numbers,” she added. “However the uncertainty just isn’t over for Constellation, specifically very weak scanner information.”
— Tanaya Macheel
‘Zombie tariffs’ will doubtless stay till new North American free commerce settlement is renegotiated, says Financial institution of America
US President Donald Trump speaks about the USA – Mexico – Canada settlement, often known as USMCA, throughout a go to to Dana Included, an auto provider producer, in Warren, Michigan, January 30, 2020.
Saul Loeb | AFP | Getty Pictures
Financial institution of America has some excellent news for buyers: the Trump Administration’s tariffs are unlikely to remain a everlasting fixture.
“Zombie tariffs stroll amongst us,” economist Carlos Capistran wrote in a Wednesday observe. “These newest occasions are in keeping with our view that tariffs are each ‘alive and useless’ on the similar time. On the one hand, tariffs have been enacted, however on the opposite, feedback made by Secretary Lutnick sign that there could also be some reduction down the street for Canada and Mexico, and as quickly as March 5.”
The economist added: “We consider that as we speak’s developments are according to our name that tariffs are doubtless momentary, and that threats of tariffs on Canada and Mexico will final till a brand new USMCA 2.0 is renegotiated.”
The USMCA — between the US, Mexico and Canada — is a free commerce settlement that Trump signed into place throughout his first time period, changing the North American Free Commerce Settlement, or NAFTA. Whereas a revision to the USMCA is scheduled for mid-2026, Capistran stated that Canada and Mexico would profit by opening a full revision earlier than that date.
— Lisa Kailai Han
Peter Navarro swipes at Trudeau, downplays market volatility: ‘Everyone’s hair is on hearth’
Peter Navarro, commerce adviser to U.S. President Donald Trump, speaks to reporters on the White Home in Washington, U.S., February 11, 2025.
Kevin Lamarque | Reuters
High Trump commerce advisor Peter Navarro pushed again after Canadian Prime Minister Justin Trudeau accused the U.S. of imposing stiff tariffs primarily based on false claims in regards to the stream of fentanyl from Canada.
“It might be actually helpful if he simply toned stuff down,” Navarro stated in a CNN interview.
“He is campaigning proper now,” Navarro stated of Trudeau, who introduced in January that he would step down as prime minister.
After the 25% tariffs on Canadian imports — and Ottowa’s countermeasures towards the U.S. — kicked in Tuesday, Trudeau slammed Trump’s transfer as a “very dumb factor to do.”
Trudeau additionally pushed again on the Trump administration’s claims about Canada’s efforts to fight fentanyl trafficking, calling them “completely false.”
Navarro on CNN additionally declined to supply any new particulars about attainable compromises that the U.S. might strike with Canada and Mexico, after Commerce Secretary Howard Lutnick steered these offers would doubtless come Wednesday.
And Navarro dismissed the festering uncertainty within the inventory market that Trump’s tariff insurance policies have helped trigger.
“We have had two days of volatility in markets and everyone’s hair is on hearth,” he stated.
— Kevin Breuninger
U.S. seized nearly no fentanyl at northern border in January, regardless of Trump’s claims
Fentanyl precursors are displayed at Reuters’ workplace, in Mexico Metropolis, Mexico, October 4, 2023.
Claudia Daut | Cp
The Trump administration is adamant that its 25% tariffs on Canada and Mexico usually are not about stoking a commerce conflict, however are as an alternative about waging a “drug conflict” towards the stream of the lethal opioid fentanyl into the U.S.
However U.S. Customs and Border Safety seized a miniscule 0.03 kilos of fentanyl on the northern border in January, in response to the agency’s own data.
And the quantity of fentanyl seized there has persistently been a small fraction of what’s intercepted by CBP brokers on the U.S. border with Mexico.
As an example, 43 kilos of the drug have been seized on the northern border in fiscal 12 months 2024, versus 21,148 kilos taken on the U.S. southwest border in the identical interval, CBP information present.
Moreover, these 43 kilos might not all have been seized on the border itself: CBP’s web site suggests the information additionally covers illicit medication interdicted “between ports of entry.”
A current Globe and Mail investigation, in the meantime, discovered that a lot of the fentanyl found in northern states had come from Mexico.
Trump, in his handle to a joint session of Congress on Tuesday night time, nonetheless stated, “we want Mexico and Canada to do way more than they’ve achieved, they usually need to cease the fentanyl and medicines pouring into the usA.”
— Kevin Breuninger
Trudeau and Trump anticipated to speak as we speak
Canada Prime Minister Justin Trudeau speaks throughout a information convention in regards to the U.S. tariffs towards Canada, on Parliament Hill in Ottawa, as Overseas Minister Melanie Joly, left, and Minister of Finance and Intergovernmental Affairs Dominic Leblanc hear, March 4, 2025.
Dave Chan | Afp | Getty Pictures
Trump and Canada Prime Minister Justin Trudeau are anticipated to speak Wednesday, individuals conversant in the matter advised Reuters and CNN.
The talks come a day after Trump imposed sweeping tariffs towards Canada and Trudeau retaliated with levies on U.S. items.
Trudeau straight appealed to Trump in an handle Tuesday, calling the tariffs “dumb.” The prime minister accused Trump of searching for to break down the Canadian economic system so as to make it simpler to annex the nation. Trump has repeatedly steered that Canada ought to change into the U.S.’ 51st state.
“The USA launched a commerce conflict towards Canada — their closest associate and ally, the closest buddy,” Trudeau stated Tuesday. “On the similar time, they’re speaking about working positively with Russia, appeasing Vladimir Putin, a mendacity, murderous dictator. Make that make sense.”
— Spencer Kimball
Mexico and U.S. to speak Thursday, Sheinbaum says
Mexico President Claudia Sheinbaum holds a press convention to announce a response to U.S. tariffs, on the Nationwide Palace in Mexico Metropolis, March 4, 2025.
Raquel Cunha | Reuters
Mexico President Claudia Sheinbaum advised reporters that she expects to talk with Trump on Thursday, in all probability within the morning, in response to NBC Information.
Mexico has not but declared retaliatory tariffs on the U.S., although Sheinbaum stated Tuesday that these can be introduced this weekend.
— Jesse Pound
Trump might exclude auto business from tariffs on Canada and Mexico, Lutnick says
U.S. Commerce Secretary Howard Lutnick speaks as President Donald Trump, left, listens, throughout an funding announcement within the White Home in Washington, D.C., March 3, 2025.
Samuel Corum | Bloomberg | Getty Pictures
Trump might exclude some sectors from the 25% tariffs imposed on Canada and Mexico, Lutnick advised Bloomberg Tv in an interview.
“The president will get to make the choice,” Lutnick stated. “There might be some classes ignored. It might effectively be autos, may very well be others as effectively.”
Lutnick stated Trump is contemplating excluding sectors which can be compliant with the United States-Mexico-Canada commerce settlement’s content material provisions.
“My understanding is the Massive Three say they produce automobiles which can be compliant beneath USMCA, which suggests they’ve ample U.S. content material in them to be a part of the USMCA settlement,” Lutnick stated of Ford, Common Motors and Stellantis. “That is a part of our dialogue, and the president’s actually enthusiastic about that.”
Lutnick stated he expects the White Home will make an announcement Wednesday and that the adjustments may very well be “someplace within the center” reasonably than an entire rollback.
— Spencer Kimball
Trump says tariffs will trigger ‘just a little disturbance’
President Donald Trump, left, addresses a joint session of Congress on the U.S. Capitol in Washington, D.C., as Vice President JD Vance, middle, and Speaker of the Home Mike Johnson, R-La., applaud, March 4, 2025.
Win Mcnamee | Through Reuters
Trump acknowledged throughout a joint session of Congress that his tariffs on main U.S. buying and selling companions will create “a little disturbance.”
“Tariffs are about making America wealthy once more and making America nice once more. And it is occurring, and it’ll occur reasonably shortly,” Trump stated through the handle Tuesday night time.
“There might be just a little disturbance, however we’re okay with that,” Trump stated. “It will not be a lot.”
— Hakyung Kim
Tariffs rock U.S. inventory market
The implementation of Trump’s tariffs has roiled the U.S. inventory market this week as buyers fear the levies will hamper the economic system.
The Dow, S&P 500 and Nasdaq Composite have all slid about 3% over Monday’s and Tuesday’s periods. With that, the blue-chip Dow is on monitor for its worst week because the regional banking disaster in March 2023. It might additionally mark the most important weekly slide for the broad S&P 500 and tech-heavy Nasdaq going again to September.
Inventory futures popped Wednesday morning, nonetheless, amid mounting hopes of a compromise on Trump’s coverage for import taxes. Follow live markets updates throughout the day here.
The three main indexes this week
Trump might reduce Canada, Mexico tariffs, Lutnick says
Trump could announce tariff compromise deals with Canada and Mexico as quickly as Wednesday, doubtless involving the scaling again of a minimum of a part of the brand new 25% levies on items from each international locations, Lutnick stated Tuesday.
“Each the Mexicans and the Canadians are on the telephone with me all day as we speak, making an attempt to indicate that they will do higher,” Lutnick stated Tuesday. “And the President is listening as a result of, you recognize, he is very, particularly reasonable and really cheap. So I believe he will work one thing out with them,” he stated on “Fox Enterprise.”
Trump, who has held up tariffs as an omnipotent negotiating instrument, primarily based the coverage on allegations that the neighboring international locations have been failing to stem the stream of medicine and crime into the U.S.
— Kevin Breuninger, Sarah Min
Canada appeals to WTO over U.S. tariffs
The World Commerce Group headquarters in Geneva, Switzerland, March 4, 2021.
Denis Balibouse | Reuters
Canada has appealed to the World Commerce Group over Trump’s imposition of tariffs.
Canada’s ambassador to the WTO, Nadia Theodore, stated Ottawa has “requested WTO consultations” with the U.S. “in regard to its unjustified tariffs on Canada.”
“The U.S. determination leaves us with no selection however to answer defend Canadian pursuits,” Theodore stated in a LinkedIn post Tuesday. “This was not the end result we hoped for. And we urge the U.S. administration to rethink their tariffs.”
A WTO official confirmed to CNBC that Canada has requested consultations, step one within the group’s course of to resolve commerce disputes.
— Spencer Kimball
China officers say they’re able to ‘combat until the top’
Chinese language President Xi Jinping stands to go away after the opening session of the Nationwide Individuals’s Congress (NPC) on the Nice Corridor of the Individuals in Beijing, China, March 5, 2025.
Tingshu Wang | Reuters
Chinese language officers are taking an aggressive stance towards the U.S. tariff escalation, together with a post on X by the Chinese language Embassy within the U.S.
“If conflict is what the U.S. desires, be it a tariff conflict, a commerce conflict or another kind of conflict, we’re able to combat until the top,” the put up stated.
Lin echoed these remarks whereas additionally calling the U.S.’ fentanyl-related clarification for the tariffs a “flimsy excuse.”
“If the U.S. has different agenda in thoughts and if harming China’s pursuits is what the U.S. desires, we’re able to combat until the top. We urge the U.S. to cease being domineering and return to the suitable monitor of dialogue and cooperation at an early date,” the spokesperson stated.
— Jesse Pound
