Washington, U.S. – President Trump announced on Thursday that he will pause the 25% tariffs on U.S. imports from Mexico and Canada covered under the 2020 trade agreement, delaying the levies that were imposed earlier this week.
The delay comes after a call between President Trump and Mexican President Claudia Sheinbaum. Trump made the announcement via a social media post, confirming that tariffs on goods covered by the United States-Mexico-Canada Agreement (USMCA) would be delayed until April 2. He signed two executive orders detailing the exemptions, which apply to most U.S. imports from Mexico and Canada under the agreement. However, goods not covered by the USMCA will remain subject to tariffs.
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“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. He described the decision as an “accommodation” for the Mexican leader and praised the relationship between the two countries.
“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,” Trump added.
The USMCA agreement covers the majority of Mexico’s trade with the U.S. In a press conference on Thursday, Sheinbaum highlighted that nearly all of Mexico’s trade with the U.S. is under the agreement.
In 2023, the U.S. imported over $45 billion worth of agricultural products from Mexico, including vegetables, fruits, beer, tequila, and other beverages, according to the U.S. Department of Agriculture. However, Canadian energy, which is not covered under the USMCA, will face a 10% tariff, potentially increasing gas prices, heating, and electricity costs in the U.S. Potash imports from Canada will also be subject to the same tariff.
Barry Appleton, a senior fellow at the Center for International Law, noted that “a massive amount of goods” fall under the temporary exemption, including auto parts, steel, aluminum, beef, and more.
Despite the brief delay, Appleton cautioned that the uncertainty surrounding the tariffs has “broken complex supply chains that will never be fixed.” Economists have also warned that the tariffs are likely to lead to price increases on a wide range of goods, from vegetables and fruits to automobiles.
In a separate move, Trump also issued a one-month tariff exemption for automakers following discussions with Ford, General Motors, and Stellantis (the parent company of Chrysler, Dodge, Jeep, and Ram). The levies on materials from Canada and Mexico used in car production will not take effect immediately.
The president has previously reversed decisions on tariffs, and business leaders have expressed concern about the uncertainty surrounding the implementation of these policies. Retail executives have warned that the tariffs are almost certain to increase costs, with some of the added expenses likely passed onto American consumers.
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