The News
US President Donald Trump on Thursday paused tariffs on most Canadian and Mexican imports, a major reprieve to Washington’s top trading partners.
The White House said any goods from Mexico and Canada that come under the auspices of the United States-Mexico-Canada Agreement, which allows for free trade between the three countries, won’t face a 25% tariff until April 2.
A White House official told reporters that roughly 50% of imports from Mexico and 36% of imports from Canada are covered under the agreement, and some producers could choose to comply with USMCA rules to avoid the levies.
Trump had earlier said that the pause on Mexican imports was done “as an accommodation, and out of respect for” President Claudia Sheinbaum.
The move is likely to buoy markets, which have slumped in recent days as the tariffs went into effect. Trump had already extended a reprieve to all auto imports from the two countries.
Prior to Canada being granted the partial reprieve, Prime Minister Justin Trudeau had said Thursday that Ottawa believes it will “be in a trade war that was launched by the United States for the foreseeable future.”