
President Trump pauses Mexico and Canada tariffs until April 2
President Trump on Thursday said he will pause 25% tariffs on U.S. imports from Mexico and Canada that are covered under a 2020 trade agreement, delaying levies imposed on the nations earlier this week.
Mr. Trump announced the delay in the Mexico tariffs in a social media post after a call with Mexican President Claudia Sheinbaum. On Thursday afternoon, he signed two executive orders stating the exemptions would apply to U.S. imports of products from both Mexico and Canada that are covered by the USMCA. Goods that are not covered by the agreement remain subject to tariffs.
"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," Mr. Trump wrote, referring to the United States-Mexico-Canada Agreement. He characterized the move "as an accommodation" for the Mexican leader.
"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!" Mr. Trump added.
The USMCA agreement covers the vast majority of imports from Mexico. In a press conference Thursday, Sheinbaum said that nearly all of Mexico's trade with the U.S. is covered under the trade pact which is in effect until April 2.
In 2023, the U.S. imported more than $45 billion worth of agricultural products from Mexico. Almost three-quarters of such imports consisted of vegetables, fruit, beer, tequila and other drinks and spirits, according to the U.S. Department of Agriculture.
Economists have warned that tariffs are likely to lead to price increases on an array of goods, from vegetables and fruit to automobiles. Levies on materials from Canada and Mexico used in car production won't go into effect immediately after Mr. Trump also issued one-month exemption from tariffs for automakers Wednesday, following conversations with Ford, General Motors and Stellantis, the parent company of Chrysler, Dodge, Jeep and Ram.
Mr. Trump has flip-flopped on tariffs before, and business leaders say uncertainty around which policies will actually take effect has created confusion for businesses and consumers.
Some of the most prominent retail executives in the U.S. have spoken out about the tariffs, saying they'd almost certainly lead to increased costs, some of which will be passed along to American consumers.
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