President Donald Trump has announced a temporary exemption for Mexico from tariffs on goods covered by the United States-Mexico-Canada Agreement (USMCA) until April 2.
“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” Trump wrote on Truth Social. “This Agreement is until April 2nd. I did this as an accommodation, and out of respect for, President Sheinbaum.”
“Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl. Thank you to President Sheinbaum for your hard work and cooperation!” Trump added.
The decision comes as part of a trade initiative by Trump, which has seen tariffs imposed on major trading partners including Mexico, Canada, and China. This has prompted immediate retaliation and market volatility. Initially, Trump imposed a 25% tariff on Mexican and Canadian imports, with a reduced rate of 10% on Canadian energy products.
Canada, however, remains uncertain about its tariff status. Canadian officials have expressed frustration with the unpredictability of U.S. trade policy.
“There’s too much unpredictability and chaos coming out of the White House right now. He wants to weaken us and once he has weakened us possibly try to annex Canada. He has said this in the past,” said Foreign Minister Mélanie Joly.
In response to the tariffs, some Canadian provinces have taken retaliatory measures. Manitoba, for instance, has banned the sale of American liquor. The province’s leader, Wab Kinew, mocked Trump by signing an order to remove U.S. liquor from stores.
Trump plans to introduce reciprocal tariffs on April 2, aiming to match tariffs, taxes, and subsidies imposed by other countries. This could increase global tariff rates and maintain the risk of broader tariffs, prompting fears of a trade war and economic slowdown.
As the situation unfolds, investors and policymakers are closely watching the developments, seeking clarity on the future of U.S. trade policy and its implications for global economic stability.