United States President Donald Trump has delayed the tariffs on imports from Canada and Mexico to minimise disruption to the automotive industry.
The executive order follows Trump's conversation with Mexican President, Claudia Sheinbaum and negotiations between Canadian and Trump administration officials.
The new agreement includes:
- A 25% tariff on items that do not satisfy the US-Mexico-Canada Agreement (USMCA) rules of origin.
- A lower 10% tariff on energy products from Canada that fall outside the USMCA.
- A lower 10% tariff on any potash imported from Canada and Mexico that isn’t in the USMA.
- No tariffs on any Canadian or Mexican imports that claim and qualify for the USMCA.
In a post to Truth Social, Trump said the agreement is until April 2 and has been made out of respect for Sheinbaum.
“Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl,” he posted.
“Thank you to President Sheinbaum for your hard work and cooperation!”
Sheinbaum also posted on social media to thank Donald Trump for his cooperation.
“We will continue to work together, particularly on migration and security issues, which include reducing the illegal crossing of fentanyl into the United States, as well as weapons into Mexico,” she posted to X.
“As mentioned by President Trump, Mexico will not be required to pay tariffs on all those products within the USMCA.”
While praising Shienbaum, Trump continued his animosity towards Canadian Prime Minister Justin Trudeau.
“Believe it or not, despite the terrible job he’s done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister,” he posted to Truth Social.
According to White House officials, around 50% of imports from Mexico and 36% of imports from Canada fall under the USMCA but many items such as avocados and energy from Canada are not included.
Stocks fell on Thursday after Trump initially failed to announce a reprieve on Canadian tariffs, but the stocks reduced their posses after the executive actions were signed.
The Dow closed about 427 points lower, or 1%. The broader S&P 500 fell 1.8% and the tech-heavy Nasdaq was 2.6% lower.
