President Donald Trump has temporarily walked back tariffs on goods from Canada and Mexico. He granted a one-month exemption for products covered under the United States-Mexico-Canada Agreement (USMCA).
The move comes as part of his trade strategy, which will see the implementation of reciprocal tariffs beginning April 2.
Trump signed two executive orders on March 6, ensuring that USMCA-compliant goods remain exempt from tariffs until next month.
Commerce Secretary Howard Lutnick confirmed that the exemption includes automobiles, which were a central focus in securing the deal.
“USMCA-compliant goods will not have a tariff for the next month until April 2,” Lutnick stated. “That includes autos, and the autos were the lead in getting this deal done.”
The decision follows discussions between Trump and Mexican President Claudia Sheinbaum, as well as Canadian Prime Minister Justin Trudeau.
Trump acknowledged Mexico’s efforts in addressing key border issues, including fentanyl trafficking and illegal immigration, and cited those commitments as a reason for the temporary tariff relief.
“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 announced on Truth Social. “This Agreement is until April 2nd. I did this as an accommodation, and out of respect for, President Sheinbaum.”
The White House noted that Sheinbaum presented evidence of increased fentanyl seizures over the last 30 days and pledged a continued crackdown on drug trafficking.
As part of the deal, Mexico has deployed 10,000 national guard troops to the U.S.-Mexico border.
Meanwhile, Canada remains in a political shake-up as Trudeau faces growing domestic challenges.
Trump did not hold back in his assessment of the Canadian prime minister, posting on Truth Social:
“Believe it or not, despite the terrible job he’s done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister. So much fun to watch!”
Trudeau, in response to U.S. tariff pressure, implemented a $1.3 billion border plan and appointed a new fentanyl czar.
However, despite the exemptions, a significant portion of Canadian and Mexican exports will remain subject to tariffs.
Under the March 6 amendment, 62 percent of goods entering from Canada—mainly energy products—will still face a 10 percent tariff, while 50 percent of Mexican imports remain under the 25 percent tariff.
Trump’s broader trade agenda includes a pivot toward full reciprocity, a policy that will take effect on April 2.
The plan will match tariffs imposed by other nations on U.S. goods while blocking countries that use non-monetary barriers to restrict American exports.
“Whatever they tariff us, we tariff them. Whatever they tax us, we tax them,” Trump told Congress earlier this week. “If they do non-monetary tariffs to keep us out of their market, then we do non-monetary barriers to keep them out of our market. We will take in trillions of dollars and create jobs like we have never seen before.”
The reciprocal tariff plan will be rolled out globally, including an expected escalation of trade restrictions on China.
Trump has already doubled tariffs on Chinese imports from 10 percent to 20 percent, signaling his administration’s commitment to leveling the playing field.
The temporary tariff relief for Canada and Mexico follows a similar decision to exempt major automakers from new tariffs for a month.
After discussions with Ford, General Motors, and Stellantis, the White House confirmed that vehicles compliant with the USMCA trade deal would not face immediate duties.
Trump remains confident that his trade policies will boost American industry, reduce the deficit, and bring manufacturing back to U.S. soil.
Despite criticism from globalists and financial market fluctuations, the president insists that his economic approach will lead to long-term prosperity.
“I think it’s globalists that see how rich our country is going to be and don’t like it,” Trump remarked, brushing off concerns over stock market reactions.
With the April 2 deadline approaching, businesses and foreign governments are preparing for the next phase of Trump’s trade agenda.