United States’ President Trump has walked back tariffs on a chunk of Canadian and Mexican exports, citing concerns voiced by the auto sector as the reason for pausing the 25 per cent across-the-board tariffs on imports from the two countries.
News that Mexico would receive about a one-month exemption on tariffs was announced via Trump’s Truth Social account earlier in the day, March 6. Trump then granted the exemption on Canadian products covered under the U.S.-Mexico-Canada Agreement (USMCA), later in the day.
Many Canadian products do or could qualify under USMCA rules, if the exporter completes the required paperwork and meets specific country of origin levels.
The pause on the 25 per cent tariffs is temporary, Trump says. Reciprocal tariffs are still set for April 2nd, the president says, and tariffs on steel and aluminum are still set for next week. Bloomberg reports that potash is expected to face a 10 per cent tariff, vs. 25 per cent.
President Trump has just signed two orders pausing Mexico and Canada tariffs for USMCA compliant goods but dug in on other tariffs.
He downplayed this move, said the steel and aluminum tariffs are going ahead next week and said he told the automakers to not ask him for another… pic.twitter.com/PiIuTQLqy6
— Josh Wingrove (@josh_wingrove) March 6, 2025
In an executive order signing held the afternoon of March 6th, Trump did say that reciprocal tariffs will be levied against those who currently have tariffs on U.S. goods, naming China, India and Canada, specifically quoting the “250 per cent tariff on dairy” that Canada has in place.
“We don’t need Canada’s lumber,” Trump re-iterated, saying he plans another executive order to allow more forestry to occur in the U.S. “Won’t need cars, trees, or energy from Canada,” he says.
More to come…
