U.S. President Donald Trump announced on Thursday that he will temporarily lift tariffs on certain products coming from Mexico under the North American Free Trade Agreement (NAFTA). This decision comes just two days after he initiated a trade war that has raised tensions with both Mexico and Canada.
In a post on Truth Social, Trump shared that he spoke with Mexican President Claudia Sheinbaum and agreed to waive tariffs on goods covered by the United States-Mexico-Canada Agreement (USMCA), known as CUSMA in Canada. He stated that this exemption will last until April 2, describing it as an accommodation and a gesture of respect towards President Sheinbaum.
Interestingly, Canada was not mentioned in Trump’s announcement, even though it is also facing significant tariffs. Earlier, Trump’s commerce secretary hinted that Canada might receive a similar reprieve. Despite this, Trump has continued to criticize Canadian Prime Minister Justin Trudeau, accusing him of exacerbating the tariff situation.
Sheinbaum expressed gratitude for Trump’s decision, emphasizing the positive nature of their conversation and their collaborative efforts on border security issues, particularly concerning fentanyl. Trump has frequently cited fentanyl as a justification for the 25 percent tariffs imposed on both Mexico and Canada, along with a 10 percent tariff on Canadian energy products.
Trudeau described the ongoing trade conflict as a “foreseeable future” issue, confirming that Canada remains engaged in this trade war initiated by the U.S. They had a lengthy phone call on Wednesday, which Trudeau characterized as “colourful.”
The Trump administration has claimed that Canada is not doing enough to tackle border security, despite substantial investments and efforts from the Canadian government. This includes appointing a fentanyl czar and reporting a decline in fentanyl seizures at the border.
Earlier this week, Trump also announced a pause on tariffs for major U.S. automakers—Stellantis, General Motors, and Ford—until April 2. This pause will precede what Trump refers to as “reciprocal” tariffs, which aim to match tariffs imposed by other countries.
While Trump’s announcement offers some relief for Mexican goods, it leaves Canadian products under the threat of tariffs for now. Trudeau has expressed cautious optimism but has indicated that Canada’s response to the tariffs will remain unchanged until a formal agreement is reached.
In retaliation for the tariffs, Canada has already implemented its own measures, including tariffs on $30 billion worth of U.S. goods. This back-and-forth has created uncertainty in the market, affecting consumer confidence and business decisions across the border.