—
Commerce Secretary Howard Lutnick said Thursday that President Donald Trump will likely announce later in the day a one-month tariff delay on all products that are covered by the USMCA free trade treaty, a significant walkback of the administration’s signature economic plan that has rattled markets, businesses and consumers.
In an interview with CNBC, Lutnick said tariffs on all treaty-compliant products will probably go into effect on April 2 unless Mexico and Canada show significant progress in fighting fentanyl crossing the border to the United States.
Stocks, which fell sharply to start the day Thursday, remained lower after Lutnick’s announcement but pared some of their losses. The Dow was down about 300 points, or 0.7%. The broader S&P 500 fell 0.9% and the tech-heavy Nasdaq was also 0.9% lower.
The market is deep in the red during Trump’s presidency in part because of the uncertainty the administration’s trade policy has caused. Businesses have paused hiring, consumer confidence has plunged and investors have shifted out of stocks and into safe havens like government bonds.
The back and forth on tariffs alone is causing confusion. Trump has routinely threatened or briefly put in place tariffs only to announce delays or pauses, leaving Corporate America unclear on how to invest and whether to hire.
This is a developing story and will be updated.
