President Trump’s ever-changing stance on tariffs against Canada and Mexico has caused confusion and uncertainty in the business world. Initially set for February 1, the proposed 25% tariffs were delayed to early March following assurances from Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum regarding fentanyl and immigration issues. Trump’s recent announcement at a Cabinet meeting hinted at a further delay to April, citing superstition for the shift to April 2.

The unpredictability of Trump’s tariff decisions has become a pattern, leaving many unsure of the seriousness of his threats. This lack of clarity can harm the economy, as businesses struggle to plan and invest amid the uncertainty. While Trump has implemented some tariffs, such as the 10% tariff on Chinese goods, others, like the expansion of steel and aluminum tariffs, await enforcement with lingering questions on their scope.

Analysts note parallels between Trump’s tariff rhetoric and the infamous “infrastructure week” promises from his first term, highlighting the tangible costs on businesses and the broader economy. Despite the formalization of tariff threats through executive orders, the conflicting goals and inconsistent rationales behind the tariffs add to the ambiguity. Market reactions reflect skepticism towards Trump’s grand announcements, with expectations that the final policy may fall somewhere between current and proposed measures. As consumer confidence wanes amid tariff concerns, the impact of Trump’s tariff tactics extends beyond the business realm, affecting sentiment and inflation fears.