President of the United States Donald Trump on Thursday, March 6, announced a nearly monthly tariff delay on goods imported from Mexico that are subject to the USMCA free trade treaty.
According to media reports, Mr. Trump’s mentioned decision is a significant walkback from the economic plan signed by his administration, which has become something of a shock factor for businesses, consumers, and markets.
Donald Trump on Thursday published a post on the digital platform Truth Social, in which he stated his agreement that Mexico will not be required to pay tariffs on everything that falls under the USMCA agreement. This statement was made after a conversation between Mr. Trump and Mexican President Claudia Sheinbaum. Donald Trump has announced that tariffs on Mexican goods will be delayed until April 2.
It’s worth clarifying that the USMCA is an agreement concluded between the United States, Canada, and Mexico during Mr. Trump’s first term as president. In this case, the three mentioned countries form a free trade zone. The agreement entered into force on July 1, 2020.
Donald Trump said he decided to delay tariffs on Mexican goods as an accommodation and out of respect for Claudia Sheinbaum. According to him, their relationship has been a very good one. He also noted that Washington and Mexico City are working hard together on the border, both in terms of stopping illegal aliens from entering the United States and in the context of stopping fentanyl. Moreover, Donald Trump expressed his gratitude to Claudia Sheinbaum for her hard work and cooperation.
The President of Mexico posted a message on the digital platform X thanking Mr. Trump for respectfully discussing the tariffs he imposed. Claudia Sheinbaum stated that virtually all of Mexico’s trade with the United States is included in the USMCA. At a press conference on Thursday, she noted that there is a part that has to do with the rules of origin, but everything is practically within the trade agreement.
Also on Thursday, it became known that Donald Trump exempted Canadian goods subject to the USMCA from his 25% tariffs. In the Oval Office, Mr. Trump said that Ottawa and Mexico City have been working much harder lately on issues of people coming in and drugs. He also noted the tremendous progress in both directions.
Cars and parts that meet USMCA requirements are among the products exempt from tariffs. Canadian potash, used heavily in fertilizers for US agricultural producers faces a lower 10% duty. The White House estimates that 62% of Canadian imports will still be subject to tariffs.
Donald Trump has said that relief for automakers will be short-lived. In this context, the President of the United States noted that he would not sign another extension next month.
The White House official stated that exempting cars from tariffs was done to minimize disruptions in the industry.
It is worth noting that against the background of tariffs from Washington, US stocks showed a drop. Moreover, Republicans expressed concern about the economic consequences of the tightening of the United States’ trade policy.
As we have reported earlier, China Hits US Agriculture Amid Tariff Confrontation.
