Trump delays some tariffs on Mexico and Canada for one month
US President Donald Trump has signed executive actions delaying tariffs on all products from Mexico and Canada that fall under the USMCA free trade agreement. The decision marks a temporary reversal of the administration’s economic strategy, which has caused uncertainty among businesses and consumers.
The delay follows a discussion between Trump and Mexican President Claudia Sheinbaum, as well as negotiations between Canadian officials and the Trump administration.
“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 on Thursday after his conversation with Sheinbaum.
He confirmed that the tariffs will now be delayed until April 2.
The USMCA (United States-Mexico-Canada Agreement), which Trump negotiated during his first term, creates a free trade zone among the three North American nations.
“I did this as an accommodation and out of respect for President Sheinbaum. Our relationship has been very good, and we are working hard together on the border, both to stop illegal aliens from entering the United States and to prevent fentanyl trafficking,” Trump added.
Sheinbaum expressed gratitude to Trump in a post on X, describing their discussion on tariffs as “respectful.” She emphasized that “virtually all” of Mexico’s trade with the US falls under the USMCA.
However, a White House official clarified that only about 50 percent of Mexican imports and 36 percent of Canadian imports are officially covered by the agreement. Many other goods, such as avocados, are not included due to high compliance costs. The official suggested that producers could register to comply with USMCA rules to avoid the 25 percent tariff for one month.
Trump had previously announced a one-month reprieve on auto tariffs, allowing automakers time to adjust their supply chains. However, industry experts note that such changes require significant investment, hiring, and planning, making immediate shifts unlikely.
Notably, energy imports from Canada are not covered under the USMCA. As a result, the 10 percent tariff on Canadian energy products will remain in place, potentially driving up gas prices in the northeastern US. Meanwhile, Trump temporarily reduced the tariff on Canadian potash from 25 percent to 10 percent to ease financial pressure on farmers.
While Trump has often praised Sheinbaum, he has been openly critical of Canadian Prime Minister Justin Trudeau. Trump accused Trudeau of leveraging the tariff dispute for political gain. Initially, he announced the tariff delay only for Mexico, later extending it to Canada.
“Believe it or not, despite the terrible job he’s done for Canada, I think Justin Trudeau is using the tariff problem—which he largely caused—to run again for prime minister,” Trump wrote on Truth Social. “So much fun to watch!”
Trudeau, in response, said Canada will remain in a trade dispute with the US “for the foreseeable future” unless the US completely removes tariffs, rather than just delaying them. He confirmed that Canada’s retaliatory measures will stay in place.
Ontario Premier Doug Ford announced that his province will impose a 25 percent tariff on electricity exports to homes in Minnesota, Michigan, and New York next week.
The ongoing trade uncertainty has created confusion among businesses, as Trump has repeatedly imposed, threatened, or delayed tariffs. Companies are struggling to determine how to invest and plan for the future.
Trump initially campaigned on imposing steep tariffs on day one of his term. Instead, he signed executive orders instructing his administration to investigate potential tariffs on various goods. His February 1 order imposed a 25 percent tariff on Canadian and Mexican imports, along with a 10 percent tariff on Canadian energy products. However, these tariffs were delayed multiple times amid negotiations.
US Commerce Secretary Howard Lutnick suggested that more one-month exemptions under USMCA are “likely,” allowing compliant goods and services to avoid tariffs.
The uncertainty surrounding these trade policies has led to stock market fluctuations and raised concerns about economic slowdowns. Businesses fear that rising costs due to tariffs could drive up consumer prices.
While Trump has delayed tariffs for now, no long-term resolution has been announced. The administration’s evolving stance continues to fuel uncertainty over the future of North American trade.
