Trump postpones tariffs on numerous imports from Canada and Mexico for one month
The president's announcement contrasts with his earlier statements asserting that the extensive tariffs would be implemented without any exclusions, exemptions, or additional delays.
TroibNews 
In a surprising shift, President Donald Trump announced on Thursday that he would postpone 25 percent tariffs on a substantial portion of imports from Mexico and Canada until next month.
This exemption pertains to automobiles and all other goods from the two countries that adhere to the U.S.-Mexico-Canada Agreement's duty-free stipulations, according to White House officials.
This announcement signifies a noteworthy retreat from the tariffs that were enforced on Tuesday and will affect about 38 percent of imports from Canada and 50 percent from Mexico.
The USMCA, negotiated during Trump’s first term, allows for duty-free trade on most goods, although specific items are subject to certain restrictions, exemptions, and qualification criteria.
A significant portion of the 62 percent of Canadian goods not covered under the USMCA consists of energy products, which may still incur higher tariffs, a White House official, who spoke anonymously, revealed to reporters regarding the policy change.
Back in February, Trump announced that Canadian energy products would incur a 10 percent tariff, contrasting with the 25 percent tariff applied to other goods.
The president has explained the rationale behind the tariffs on Canada and Mexico as a response to what he describes as a national emergency due to the influx of fentanyl across U.S. borders with these nations. “We've got to stop the flow of fentanyl being made in Canada and Mexico and coming into our country,” commented Commerce Secretary Howard Lutnick in a statement.
“On April 2, we're going to move into the reciprocal tariff and hopefully Mexico and Canada will have done a good enough job on fentanyl that this part of the conversation will be off the table and will move just to the reciprocal tariff conversation,” Lutnick continued.
His comments referred to Trump’s intention to implement "reciprocal tariffs" on all trading partners based on an assessment of tariff and non-tariff barriers that American companies encounter in these markets.
While both Canada and Mexico impose zero tariffs on the majority of U.S. products under the USMCA, the Trump administration could potentially unearth non-tariff barriers in either country to justify introducing reciprocal tariffs. These could include Canada’s restrictions on dairy imports and Mexico’s limitations on foreign investment in its energy sector.
Additionally, Trump’s Thursday actions eliminate tariffs on potash, a crucial mineral used in fertilizer production. The U.S. imports most of its potash from Canada, a leading global producer of the mineral.
This exemption is likely to please farmers, a vital support base for Trump, who had anticipated being adversely affected by the tariffs, especially with retaliation from China and Canada as well as rising fertilizer and farm equipment prices.
Fertilizer prices had already surged due to the war in Ukraine, which disrupted access to nitrogen-based fertilizer components originating from Russia and potash mines in both Russia and Ukraine.
These developments followed Trump’s announcement on Truth Social about suspending tariffs on all USMCA products from Mexico, without addressing Canadian goods. He continued to express criticism of Canadian Prime Minister Justin Trudeau on his social media platform.
"Many thanks to President Donald Trump. We had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results, within the framework of respect for our sovereignties,” stated Mexican President Claudia Sheinbaum in a post on X following the call. “As mentioned by President Trump, Mexico will not be required to pay tariffs on all those products within the USMCA. This agreement is until April 2, when the United States will announce reciprocal tariffs for all countries."
The decision to halt tariffs on additional Canadian and Mexican goods came just a day after the White House revealed a one-month extension for all auto manufacturers in North America complying with USMCA requirements.
Daniel Desrochers contributed to this report.
Sanya Singh contributed to this report for TROIB News
This exemption pertains to automobiles and all other goods from the two countries that adhere to the U.S.-Mexico-Canada Agreement's duty-free stipulations, according to White House officials.
This announcement signifies a noteworthy retreat from the tariffs that were enforced on Tuesday and will affect about 38 percent of imports from Canada and 50 percent from Mexico.
The USMCA, negotiated during Trump’s first term, allows for duty-free trade on most goods, although specific items are subject to certain restrictions, exemptions, and qualification criteria.
A significant portion of the 62 percent of Canadian goods not covered under the USMCA consists of energy products, which may still incur higher tariffs, a White House official, who spoke anonymously, revealed to reporters regarding the policy change.
Back in February, Trump announced that Canadian energy products would incur a 10 percent tariff, contrasting with the 25 percent tariff applied to other goods.
The president has explained the rationale behind the tariffs on Canada and Mexico as a response to what he describes as a national emergency due to the influx of fentanyl across U.S. borders with these nations. “We've got to stop the flow of fentanyl being made in Canada and Mexico and coming into our country,” commented Commerce Secretary Howard Lutnick in a statement.
“On April 2, we're going to move into the reciprocal tariff and hopefully Mexico and Canada will have done a good enough job on fentanyl that this part of the conversation will be off the table and will move just to the reciprocal tariff conversation,” Lutnick continued.
His comments referred to Trump’s intention to implement "reciprocal tariffs" on all trading partners based on an assessment of tariff and non-tariff barriers that American companies encounter in these markets.
While both Canada and Mexico impose zero tariffs on the majority of U.S. products under the USMCA, the Trump administration could potentially unearth non-tariff barriers in either country to justify introducing reciprocal tariffs. These could include Canada’s restrictions on dairy imports and Mexico’s limitations on foreign investment in its energy sector.
Additionally, Trump’s Thursday actions eliminate tariffs on potash, a crucial mineral used in fertilizer production. The U.S. imports most of its potash from Canada, a leading global producer of the mineral.
This exemption is likely to please farmers, a vital support base for Trump, who had anticipated being adversely affected by the tariffs, especially with retaliation from China and Canada as well as rising fertilizer and farm equipment prices.
Fertilizer prices had already surged due to the war in Ukraine, which disrupted access to nitrogen-based fertilizer components originating from Russia and potash mines in both Russia and Ukraine.
These developments followed Trump’s announcement on Truth Social about suspending tariffs on all USMCA products from Mexico, without addressing Canadian goods. He continued to express criticism of Canadian Prime Minister Justin Trudeau on his social media platform.
"Many thanks to President Donald Trump. We had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results, within the framework of respect for our sovereignties,” stated Mexican President Claudia Sheinbaum in a post on X following the call. “As mentioned by President Trump, Mexico will not be required to pay tariffs on all those products within the USMCA. This agreement is until April 2, when the United States will announce reciprocal tariffs for all countries."
The decision to halt tariffs on additional Canadian and Mexican goods came just a day after the White House revealed a one-month extension for all auto manufacturers in North America complying with USMCA requirements.
Daniel Desrochers contributed to this report.
Sanya Singh contributed to this report for TROIB News
