The Scoop: Brands enter holding pattern amid tariff uncertainty

President Donald Trump has once again delayed the implementation of 25% tariffs on many imports from Mexico and Canada for one month.

Trump’s executive order will temporarily exclude imports from Mexico that comply with the 2020 USMCA trade pact, the Associated Press reported. The same goes for auto-related imports from Canada that comply with the trade deal. 

However, roughly 62% of imports from Canada would likely still face the new tariffs because they’re not USMCA-compliant, the AP wrote, citing an anonymous White House official. The official said about half of imports from Mexico would also be taxed under the orders as well.

“Most of the tariffs go on April the second,” Trump said Thursday. “Right now, we have some temporary ones and small ones, relatively small, although it’s a lot of money having to do with Mexico and Canada.”

Why it matters: One thing businesses hate is uncertainty. And right now, that’s what we’re getting from Trump. 

Trump’s tariffs, which he claims target fentanyl smuggling, have caused stock market declines and consumer alarm, partly due to rapid changes and confusion over what’s affected

Whether it’s tariffs or further delaying the TikTok ban, we don’t know what this administration is going to end up doing, deadlines or not.

Stocks dropped significantly on Thursday, with the Dow closing down about 427 points, or 1%. The broader S&P 500 fell by 1.8%, and the Nasdaq dropped by 2.6%. The market continued to decline after Trump initially failed to announce a tariff reprieve for Canada, CNN reported. 

“The market is in the red during Trump’s presidency in part because of the uncertainty the administration’s trade policy has caused,” CNN wrote.

Whether these are strategic political decisions or gut reactions, it doesn’t matter to brands. 

Brands should avoid speaking in absolutes or making promises, as things are likely to change. Messaging should remain clear and direct during major events, but there’s no need to react to every small change, since things are bound to shift again.

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Casey Weldon is a reporter for PR Daily. Follow him on LinkedIn.