President Donald Trump on Thursday suspending tariffs on Mexican and Canadian goods in compliance with the US-Mexico-Canada Agreement (USMCA), giving the two largest trading partners a reprieve.
Trump signed an order that changed the tariffs he introduced earlier in the week, putting him on a 25% obligation to import from both countries. Under the revised policy, products compliant with the USMCA are exempt from customs duties. This is a move designed to encourage North American production while ensuring compliance with trade commitments.
The exemption is expected to last until April 2, and until April 2, the administration will announce plans for global mutual tariffs on countries that impose tariffs and non-tariff barriers on US goods.
The move to change the tariffs was first announced by Commerce Secretary Howard Rutnick in an interview with Fox Business's Larry Kudlow.
“Both Mexicans and Canadians were calling with me today, and the president's listening is because he's very fair and very reasonable,” Lutnick said Tuesday. “I think he's going to work something together with them. There's no pause. There's nothing to pause, but I think he's trying to do more.
The decision follows discussions between Trump and Mexican President Claudia Shainbaum and Canadian Prime Minister Justin Trudeau and meetings with Ford, GM and Stellantis automotive executives. The White House showed that the delay reflects increased cooperation from Mexico and Canada on border security and fentanyl trafficking.
“They've been working hard all these days, did you notice that? Trump spoke in the oval office, highlighting recent progress on both issues, highlighting the elliptical office. Commerce Secretary Howard Lutnick reflected that sentiment, saying that both countries have stepped up enforcement efforts against fentanyl trafficking, a major concern in the administration.
Trump has announced tariff delays on the true society.
“After talking to Mexican President Claudia Sinbaum, I agreed that Mexico does not need to pay tariffs on anything that falls under the USMCA agreement, which will be through April 2,” Trump said in his true social account.
He further stated that he granted the “disrespectful” exemption to Shainbaum. In particular, Trump did not mention Canada in his social media posts.
Some media framed delays in response to market volatility, but Trump rejected the concept entirely.
“No, it has nothing to do with the market. I've not even seen them… In the long run, the US will be very strong on what's going on here,” Trump said in response to a question from a reporter in the elliptical office, that he is focusing on trade policy rather than short-term stock movements.
The temporary tariff deferral covers cars and parts that meet the USMCA requirements, a policy shift announced earlier this week. Three big Detroit automakers were lobbying for relief, claiming that tariffs would raise production costs and put unemployment at risk. They told the president that tariffs disrupt North America's deeply integrated automotive supply chain. Trump granted the exemption, but revealed he was a temporary auto executive.
“I told them it was, this is a short-term deal,” Trump said.
Other industries are still affected. According to the White House, Canadian energy products face 10% tariffs, with 62% of Canadian imports and about half of Mexican imports that do not comply with USMCA regulations still being subject to tariffs. The administration has also confirmed that tariffs already paid will not be refunded.
The temporary exemption expires on April 2, when it is expected to deploy broader mutual tariffs on sector-specific obligations with other trading partners that aim to reduce the US trade deficit and persuade other countries to lower tariffs. Trump has long argued that US trade partners have been disproportionately benefiting from America's economic strength, and that he uses tariffs as a negotiating tool to readjust global trade relations.
The move came when Treasury Secretary Scott Bescent spoke to economic clubs in New York and presented the administration's vision for trade and economic policy.
“Access to cheap products is not the essence of American dreams,” Bescent said.
