The Trump administration will exempt U.S. automakers from new tariffs on Canadian and Mexican imports for one month, the White House said Wednesday—as the 25% levies imposed Tuesday could potentially lead to price hikes on a range of imported goods, from food and alcohol to lumber.

President Donald Trump on Thursday signed executive actions that delay for nearly one month tariffs on all products from Mexico and Canada that are covered by the USMCA free trade treaty, a significant walkback of the administration’s signature economic plan that has rattled markets,

Mexico President Claudia Sheinbaum said Tuesday that Mexico will respond to 25% tariffs imposed by the United States with its own retaliatory tariffs on U.S. goods. Sheinbaum said she will announce the products Mexico will target on Sunday in a public event in Mexico City’s central plaza,

The Trump administration is granting a one-month carveout on tariffs against Canada and Mexico for automakers, White House press secretary Karoline Leavitt announced.

Trump said tariffs on some goods from Canada and Mexico planned for April 2 “could go up” and would not predict whether the United States will have a recession.

Congress avoided a government shutdown Friday evening, after the Senate passed legislation that funds the federal government through September at spending levels similar to the 2024 fiscal year.

President Trump is locked in a tit-for-tat tariff war with Canada, Mexico, the European Union and China in a bid to remake the US economy for the long term – and some early winners and losers have already emerged.

Texas Republican Sen. Ted Cruz reacts to fresh tariffs from the Trump administration and shares his plan to end taxes on tips.