On Thursday morning, President Trump announced that all Mexican goods complying with the USMCA (United States-Mexico-Canada Agreement) will be exempt from U.S. tariffs until April 2nd. There have been no developments regarding tariffs between the U.S. and Canada.
According to Trump’s post on the social media platform “Truth Social” at 11:30 a.m. Eastern Time on Thursday, he stated, “After discussions with Mexican President Claudia Sheinbaum, I have agreed that Mexico will not have to pay tariffs on any products under the USMCA agreement until April 2nd.”
Trump explained that he made this decision for reconciliation and to show respect to President Sheinbaum.
Canadian Prime Minister Trudeau indicated that they will continue to engage with the U.S. to negotiate the removal of the 25% tariffs imposed on Canada.
“Our goal remains to lift these tariffs, all tariffs,” Trudeau stated on Thursday morning. He added, “At the same time, we will take action to support Canadians through challenging times ahead.”
Trudeau also mentioned that during a 50-minute phone call with Trump on Wednesday, he reiterated facts, implicitly rejecting Trump’s claims about drugs entering the U.S. from Canada.
“Our border is secure, and less than 1% of the illicit fentanyl entering the U.S. comes from Canada,” Trudeau affirmed.
“I also emphasized that the tariffs imposed by the U.S. government will harm American workers and businesses,” he said.
On the other hand, Trump once again accused Trudeau on Thursday of using the trade war for his political advantage.
“Believe it or not, despite doing a terrible job for Canada, I believe Trudeau is once again campaigning for prime minister by exploiting the tariff issue, which is largely a problem he created,” Trump wrote on “Truth Social.” “It is quite interesting.”
Following a meeting with Trudeau, Trump posted, “Trudeau called me to ask what they can do about the tariff issue. I told him many people are dying from fentanyl flowing in from the Canadian and Mexican borders, but there is no evidence to convince me that the flow of fentanyl has stopped. He said it has improved, but I told him, ‘It’s not good enough.'”
U.S. Commerce Secretary Howard Lutnick, in an interview with CNBC on Thursday, discussed the U.S. tariffs on Canada and Mexico. He stated that if progress is made in combatting fentanyl between the two countries, Canadian and Mexican goods may only face equivalent tariffs on April 2nd.
“I expect the President to reach an agreement today that goods that meet USMCA requirements will not be subject to tariffs until April 2nd of next month,” Lutnick said.
The USMCA is a trade agreement achieved during Trump’s first term, aiming to replace the original North American Free Trade Agreement.
“Hopefully Mexico and Canada will address the fentanyl issue well enough so negotiations won’t involve this part, but rather focus on equivalent tariff talks,” Lutnick added.
According to Bloomberg, the White House is considering exempting some agricultural products from tariffs for Mexico and Canada. U.S. Agriculture Secretary Brooke Rollins stated on Wednesday, “As for specific exemptions for the agricultural industry, they may include potassium fertilizer and chemicals, but it is yet to be determined.”
Canada is a significant supplier of agricultural chemicals to the U.S.
A White House spokesperson also stated on Wednesday that after postponing tariffs on the automotive industry complying with the USMCA for a month, Trump is willing to provide more tariff exemptions.