Asian equities bounced Tuesday, while the Mexican peso and Canadian dollar rallied after Donald Trump said he would delay the imposition of stiff tariffs on imports from the US neighbours, soothing trade war worries for now.
The US president’s comments that he would hold last-minute talks with Chinese counterpart Xi Jinping to pause levies on goods from the world’s number-two economy provided extra optimism.
Markets from Japan to New York were sent tumbling Monday after news at the weekend that Trump had signed off 25 percent duties against Mexico and Canada, fanning concerns for the stuttering global economy.
However, hours before the tariffs were due to take effect, Trump said he had struck deals with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum on immigration and fentanyl, and would postpone the measures for a month.
Talks on final deals would continue with both countries, he added.
The Republican added that he would hold talks with Beijing “probably in the next 24 hours” to avoid new 10 percent tariffs on Chinese imports.
The three countries are the United States’ three biggest trading partners and had warned they would retaliate.
News of the deals saw the Mexican peso surge more than three percent — having tumbled to a three-year low on Monday — while the Canadian dollar rallied more than one percent.বিস্তারিত