A self-imposed Feb. 1 deadline by Donald Trump for a first round of tariffs on Canada, Mexico, and China looms in less than two days as economic observers and world leaders try to plan amid the uncertainty.A series of comments in recent days from the president and his commerce secretary pick have offered little clarity, leaving many in wait-and-see mode.The uncertainty could already be weighing on business decisions, according to Charles Schwab’s Kevin Gordon, citing the effects of last weekend’s 10-hour trade war with Colombia that ended as quickly as it began.Read more: What are tariffs, and how do they affect you?”That nature of policy-making is what causes companies to maybe take a step back and halt their spending,” he said during a live conversation on Yahoo Finance.Trump’s last round of trade tensions and brinksmanship in 2018 and 2019 also saw business spending slow materially, he added. President Donald Trump speaks to reporters Thursday at the White House Thursday about the mid-air crash between American Airlines and a military helicopter in Washington. (Celal Gunes /Anadolu via Getty Images) · Anadolu via Getty ImagesLeaders in Canada and Mexico have expressed confusion and frustration about what they can do this time around, with Trump promising 25% tariffs on them as soon as this Saturday over issues of migration and illegal fentanyl.China could also be in line for 10% duties over those issues.Each utterance from Trump’s administration has been closely watched this week, but the comments have sometimes offered little clarity.Commerce secretary nominee Howard Lutnick even offered material for both sides of the debate.Lutnick — who is set to be Trump’s top trade official if he is confirmed — began his Senate confirmation hearing this week by saying “I prefer across the board” duties and specifically cited why he thinks they are preferable when dealing with countries like Mexico.But then later in response to a different question he reminded that the Trump administration has a clear short-term off-ramp, calling this weekend’s possible duties “separate” from overall plans.He also said if places like Mexico take action to shut their border to staunch migration and illegal drugs then — at least for now — “there will be no tariffs.” Mexico’s President Claudia Sheinbaum during a press conference at the National Palace in Mexico City on January 28. (ALFREDO ESTRELLA/AFP via Getty Images) · ALFREDO ESTRELLA via Getty ImagesAnother back-and-forth came on Monday following a Financial Times report that newly confirmed Treasury Secretary Scott Bessent is pushing a market-friendly plan that could see Trump’s plan for universal tariffs start at a lower level of 2.5% and then rise gradually.But Trump himself immediately poured cold water on the idea when speaking to reporters on Air Force One.The lack of clarity has left a wide array of officials, from Fed Chairman Jerome Powell to the president of Mexico, in wait-and-see mode.”We are goin
Sab. Feb 1st, 2025
