President Trump announced Thursday that tariffs on Mexican imports covered by a North American trade agreement signed during his first term will be delayed for approximately one month.
Trump announced on Truth Social that goods covered by the United States-Mexico-Canada Agreement (USMCA) will be exempt from the 25% tariff he imposed this week on imports from Mexico and Canada. The delay will last until April 2, at which point Trump has promised to impose reciprocal tariffs on all countries that levy duties on US imports.
“I did this as an accommodation, and out of respect for, President Sheinbaum,” Trump wrote, adding that he had spoken with the Mexican president. “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 stop Fentanyl. Thank you, President Sheinbaum, for your hard work and cooperation.”
Trump signed the USMCA in 2020, which replaced the North American Free Trade Agreement. The exemption announced Thursday would apply to Mexican imports that meet certain USMCA requirements, primarily being made in North America.
There was no indication of whether Canada would receive a similar reprieve.
On Tuesday, Trump imposed a 25% tariff on imports from Canada and Mexico, as well as an additional 10% tariff on Chinese goods. He expressed frustration with the flow of fentanyl into the United States, despite the fact that experts have noted that relatively little fentanyl enters the country, particularly through the northern border.
Trump spoke with Canadian Prime Minister Justin Trudeau on Wednesday, but he has since taken to social media to mock the Canadian leader as a “governor” and claim Trudeau is using the trade war to boost his political fortunes. Trudeau is expected to step down as Canada’s leader in the coming weeks.
Trump has already granted one exemption, announcing on Wednesday that tariffs would not apply to automakers covered by USMCA, including Ford, General Motors, and Stellantis.
The White House’s unpredictable approach to tariffs has roiled financial markets, with the Dow Jones Industrial Average, Nasdaq composite, and S&P 500 all falling this week.
In addition to the tariffs imposed on Canada and Mexico this week, Trump has promised reciprocal tariffs on other countries, as well as sector-specific tariffs on auto imports, semiconductors, pharmaceuticals, and certain other goods.
