Trump Grants Temporary Tariff Exemption to Mexico Under US-Mexico-Canada Agreement

4 Min Read

President Donald Trump announced Thursday that Mexico would be temporarily exempt from tariffs on goods under the United States-Mexico-Canada Agreement (USMCA) until April 2. The decision follows a conversation with Mexican President Claudia Sheinbaum Pardo, marking a significant development in North American trade relations.

- Advertisement -

Trump made the announcement via a post on Truth Social, writing:

“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,” Trump wrote. “This Agreement is until April 2nd. I did this as an accommodation, and out of respect for, President 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. Thank you to President Sheinbaum for your hard work and cooperation!”

Sheinbaum Pardo acknowledged and appreciated Trump’s decision in a post on X, stating, “Many thanks to President Donald Trump. We had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results, within the framework of respect for our sovereignties.” According to a translation by Grok, she emphasized continued cooperation on migration and security, including efforts to curb the illegal flow of fentanyl into the U.S. and weapons into Mexico.

A White House official, speaking with Fox News, stated that Sheinbaum Pardo presented “tangible evidence” of increased fentanyl seizures in the past 30 days, demonstrating Mexico’s commitment to tackling drug trafficking and cartel activity.

- Advertisement -

Fox Business reports that while Mexico secured a temporary exemption, Canada has not been granted similar relief. Following a call with Canadian Prime Minister Justin Trudeau, Trump remained firm on a 25% tariff imposition, criticizing Trudeau’s efforts to combat fentanyl trafficking as “not good enough.” Trump also accused Trudeau of leveraging the trade war for political gain.

In response, Ontario’s premier criticized Trump’s approach, suggesting he lacked understanding of the integrated nature of North American supply chains. Meanwhile, Trudeau remained resolute, stating that Canada “will continue to be in a trade war that was launched by the United States for the foreseeable future.”

Trudeau described his call with Trump as “colorful” and “very substantive,” emphasizing efforts to mitigate tariff-related harm to Canadian industries. “Any carve-outs that support any workers in Canada, even if it’s just one industry or another, are going to be a good thing,” he said. Trudeau, expected to step down as the Liberal Party selects a new leader on Sunday, further remarked, “A win-lose between us would actually be worse for them than a win-win. That’s true in international trade, in relations between nation states… It perhaps is not true in real estate deals.”

The Trump administration’s selective approach to tariffs has raised questions. Commerce Secretary Howard Lutnick defended the strategy on Fox News, pushing back against criticisms that the administration was inconsistent. “Does that sound like a foot off the gas? That sounds like a foot on the chest,” Lutnick asserted, pointing to the concessions from Mexico and Canada as evidence of the policy’s effectiveness.

Meanwhile, the “Big Three” U.S. automakers—Stellantis, Ford, and General Motors—secured a temporary one-month exemption from the tariffs after a discussion with Trump. White House Press Secretary Karoline Leavitt confirmed the exemption in a statement on Monday.

Leave a Comment

This will close in 20 seconds