Trump Delays All Tariffs on Canada and Mexico Imports – Here's What You Need to Know

Analytics

Trump Delays Tariffs on Imports from Canada and Mexico

UPDATED — President Donald Trump is delaying 25% tariffs on goods from Canada and Mexico until April 2, the White House announced on Thursday. This move marks the latest chapter in the dynamic trade relationship between the U.S. and its major North American partners.

Earlier, President Trump had only mentioned an exemption for Mexico, but the recent amendment to his order now includes Canada as well. This announcement follows discussions and agreements under the U.S.-Mexico-Canada Agreement (USMCA).

For at least the next 30 days, importers will not be required to pay tariffs on imports from Canada and Mexico that comply with the USMCA terms. This postponement comes amid an escalating trade war between the U.S. and its biggest trading partners.

The White House specified on Wednesday that there would be a one-month delay in implementing tariffs on automakers whose products align with the USMCA guidelines. However, it remains unclear if the exemption covers both finished vehicles and auto parts from Canada and Mexico. Howard Lutnick, the Commerce Secretary, suggested that the one-month exemption likely extends beyond just carmakers.

MEMA, The Vehicle Suppliers Association, expressed optimism, stating, "Conversations held today indicate positive results that USMCA-compliant parts are included, but we are awaiting official confirmation from the administration."

Notably, the 10% duty on imports of Canadian electricity and oil will remain in place, as these do not fall under the USMCA.

President Trump had a constructive meeting with Mexican President Claudia Sheinbaum, as he shared on Truth Social, emphasizing cooperation on border security and stopping illegal immigration and drug trafficking.

The Trump administration had applied 25% tariffs on imports from Canada and Mexico, alongside a 10% tariff on goods from China. These duties aim to encourage more collaboration from these nations on critical issues affecting the U.S.

Starting April 2, the White House is prepared to introduce broad reciprocal tariffs to align with those charged by other countries on U.S. imports.

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