- Trump Expands Exemptions on Tariffs
- Tariff Changes Create Uncertainty for Businesses
- U.S. and Mexico Agree to Work Together
U.S. President Donald Trump has signed orders that significantly expand the list of goods exempt from his new tariffs on Canada and Mexico, which were imposed earlier this week.
This is the second time in two days that Trump has rolled back tariffs on imports from the U.S.’s two largest trade partners, measures that have caused uncertainty for businesses and raised concerns in financial markets.
On Wednesday, Trump announced a temporary exemption for car manufacturers from the 25% import levies, just a day after the tariffs were enforced.
In response, Mexican President Claudia Sheinbaum thanked Trump, while Canada’s Finance Minister stated that Canada would delay its planned second round of retaliatory tariffs on U.S. goods. Canadian Prime Minister Justin Trudeau mentioned having a “colorful” conversation with Trump over the phone regarding the tariffs.
Reports from both U.S. and Canadian media indicated that Trump used strong language during the tense discussion.
Trudeau emphasized that a trade war between the two allies remains likely for the foreseeable future, despite some temporary relief. “Our goal remains to get these tariffs, all tariffs removed,” he added.
Sheinbaum also described her conversation with Trump as “excellent and respectful” and highlighted their agreement to collaborate on reducing the flow of fentanyl into the U.S. and curbing the illegal trafficking of firearms into Mexico.
The tariff exemptions now apply to goods traded under the US-Mexico-Canada Agreement (USMCA), which Trump signed during his first term. These include products such as televisions, air conditioners, avocados, and beef, according to an analysis by Trade Partnership Worldwide.
Additionally, the tariffs on potash, a crucial fertilizer ingredient for U.S. farmers, were reduced from 25% to 10%.
A White House official stated that about 50% of U.S. imports from Mexico and 62% from Canada may still face tariffs, although these figures could change depending on how businesses adjust to the new regulations.
The White House also continues to push its plans for further tariffs, with officials promising to release tailored recommendations for “reciprocal” trade duties on countries worldwide by April 2.
