President Trump said Thursday he is delaying for roughly one month tariffs on Mexican imports that are covered under a North American trade agreement signed during his first term.
Trump posted on Truth Social that goods that fall under the U.S.-Mexico-Canada Agreement (USMCA) will be exempted from a 25 percent tariff he imposed this week on imports from Mexico and Canada. The delay will last until April 2, at which point Trump has pledged to impose reciprocal tariffs on all nations that have duties on U.S. imports.
“I did this as an accommodation, and out of respect for, President Sheinbaum,” Trump posted, noting he had spoken with the Mexican president. “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!”
Trump signed the USMCA in 2020, replacing the North American Free Trade Agreement. The exemption announced Thursday would apply to Mexican imports that meet certain requirements under the USMCA, chiefly that they are products made in North America.
There was no indication of whether Canada would be granted a similar reprieve.
Trump on Tuesday imposed 25 percent tariffs on imports from Canada and Mexico, as well as an additional 10 percent tariff on Chinese goods. He cited frustration over the flow of fentanyl into the United States, though experts have noted relatively little fentanyl enters the country through the northern border in particular.
Trump spoke Wednesday with Canadian Prime Minister Justin Trudeau, but he has taken to social media to troll the Canadian leader as “governor” and has suggested Trudeau is using the trade war to increase his political fortunes. Trudeau is set to step down as Canada’s leader in the coming weeks.
Trump has already granted one carve-out, announcing Wednesday that tariffs would not apply to automakers covered under USMCA, such as Ford, General Motors and Stellantis.
The White House’s unpredictable approach on tariffs has rattled financial markets, with the Dow Jones Industrial Average, the Nasdaq composite and the S&P 500 all taking on losses this week.
In addition to the tariffs on Canada and Mexico this week, Trump has vowed reciprocal tariffs on other nations, as well as sector-specific tariffs on auto imports, semiconductors, pharmaceuticals and certain other materials.
Updated at 12 p.m. EST
