Trump delays tariffs on Mexico and Canada until April

Trump delays tariffs on Mexican and Canadian goods for four weeks, but warns higher charges will resume on 2 April.

In Short

Donald Trump has temporarily exempted most goods imported from Mexico and Canada from tariffs for four weeks due to trade disputes, with the intention to address border issues. However, heightened tariffs are set to return on 2 April, causing concerns about economic repercussions and potential recession.

Donald Trump has announced that most goods imported from Mexico and Canada will be exempt from tariffs for four weeks, following recent trade charges.

This marks the second delay in his trade war with these nations, with heightened tariffs set to return on 2 April.

The president stated the exemption aims to address border issues, including illegal immigration and drug trafficking.

Initial tariff waivers were granted after requests from car manufacturers, and the White House clarified that goods meeting USMCA trade agreement criteria would not incur tariffs.

Canadian goods complying with USMCA will also remain tariff-free until 2 April, following a similar agreement with Mexico.

US commerce secretary Howard Lutnick noted that over half of typical cross-border trade volumes would be exempt under the new concessions.

However, he warned that this reprieve is temporary, with reciprocal tariffs planned for 2 April alongside an existing 25% charge.

The auto industry indicated that no products from Canada and Mexico are currently subject to tariffs, preventing potential costs of $4,000 on new vehicle purchases.