Mexico has been given a one-month reprieve. And Canada could be next.
U.S. President Donald Trump announced via his Truth Social account Thursday that he has postponed the 25% tariffs applied to most goods imported from Mexico for a month. It’s the second time the hefty tariffs on Mexican goods covered under the Canada-U.S.-Mexico Agreement on trade have been paused.
The same could happen with the 25% tariffs Trump initially slapped on Canadian goods last month, then postponed, then activated again.
The U.S. Secretary of Commerce, Howard Lutnick, told CNBC earlier that he expects tariffs on both Canada and Mexico to “likely” be delayed. But Trump made no announcement about delaying the tariffs against Canada.
Trump said via social media that he elected to delay the tariffs on Mexico until April 2.
“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 said on Truth Social. “I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a 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.”
Trump also used his Truth Social account to take another shot at 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,” Trump said. “So much fun to watch!”
Trump imposed the 25% tariffs on virtually all goods from Canada and Mexico on Tuesday, with a 10% levy on energy from Canada. Then, on Wednesday, he backed off slightly and gave a one-month exemption to vehicles made by the Big Three automakers.
The speculation that Trump will delay the tariffs against Canadian goods did little to temper Trudeau’s beliefs that he expects Canada and the U.S. to be in a trade war for the foreseeable future. But he also said it was a “promising sign.”
A possible month-long pause “aligns with some of the conversations that we have been having with administration officials.”