In a surprising move, President Donald Trump announced Thursday that Mexico will be exempt from tariffs on goods covered by the US-Mexico-Canada Trade Agreement (USMCA) until April 2. The announcement came after a phone conversation between Trump and Mexican President Claudia Sheinbaum, who expressed appreciation for the decision.
Trump shared the news via social media, stating, “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. This Agreement is until April 2nd.” He emphasized that the decision was made as a gesture of respect and accommodation to Sheinbaum, highlighting their strong working relationship.
In his statement, Trump also praised the cooperation between the two nations on joint efforts to address issues like border security, illegal immigration, and the ongoing fentanyl crisis. He thanked Sheinbaum for her hard work and commitment to these shared goals.
The move follows the initial imposition of 25% tariffs on goods from both Canada and Mexico earlier this week, leading to market uncertainty and concerns among business leaders. Trump’s decision to extend the exemption to both countries represents a shift in policy and a reprieve for industries that depend on cross-border trade.
While Trump initially only indicated an exemption for Mexico, the amended tariffs order, issued on Tuesday, now applies to both of the United States’ largest trading partners. The exemption will remain in effect until April 2, allowing time for further negotiations and the development of a longer-term trade strategy.
This latest change in the trade landscape has already sent ripples through financial markets, highlighting the unpredictable nature of the administration’s approach to international trade. For now, businesses on both sides of the border can breathe a temporary sigh of relief, though the clock is ticking down to the April deadline.
