Tariffs on Mexican goods covered by a North American trade pact inked during President Trump’s first term will be delayed for about one month, according to a statement he made on Thursday.
Trump said on Truth Social that the 25% tax he placed on Canadian and Mexican imports this week will not apply to items covered under the U.S.-Mexico-Canada Agreement (USMCA). Trump has promised to slap reciprocal tariffs on any nations that levy levies on U.S. goods, thus the wait will continue until April 2.
Trump expressed his understanding and consideration for President Sheinbaum in a post where he acknowledged his conversation with the Mexican leader. We have had a cordial relationship, and we are cooperating fully to secure the border and prevent the entry of illegal immigrants and the spread of the deadly drug fentanyl. For all of President Sheinbaum’s efforts and cooperation, I am eternally grateful.
In 2020, Trump replaced the North American Free Trade Agreement with the USMCA. The exemption that was revealed on Thursday would only apply to Mexican goods that fulfill specific criteria set forth under the USMCA, the most important of which is that they are North American products.
No word on whether Canada will get a comparable break was provided.
Imports from Mexico and Canada were subject to 25% duties on Tuesday, while Chinese goods were subject to an extra 10% duty. He voiced his displeasure with the influx of fentanyl into the US, even though scientists have shown that the northern border is a particularly ineffective entry point.
After speaking with Trudeau on Wednesday, Trump resorted to social media to mock Trudeau, calling him a “governor” and implying that Trudeau is trying to use the trade war to further his political career. In a few of weeks, Trudeau will resign as prime minister of Canada.
One exemption has already been given by Trump. On Wednesday, he announced that the USMCA-covered automakers—including Stellantis, General Motors, and Ford—would not be subject to tariffs.
This week, the Dow Jones Industrial Average, the Nasdaq composite, and the S&P 500 all lost ground due to the uncertainty surrounding the White House’s tariff policies.
Trump has threatened more duties on other countries in addition to the ones imposed on Canada and Mexico this week. He has also threatened sector-specific penalties on semiconductors, medicines, automobiles, and other products.