President Donald Trump approved tariff exemptions Thursday for imports from Canada and Mexico that comply with the U.S.-Mexico-Canada Agreement (USMCA), marking the latest reversal in a week of shifting trade policies.
Under the new orders, USMCA-compliant goods will be exempt from Trump’s 25% tariffs until April 2, at which point the president plans to impose reciprocal tariffs on countries that levy duties on U.S. imports.
Additionally, Trump lowered tariffs on Canadian potash—a key fertilizer ingredient—from 25% to 10%. The exemption also applies to auto imports and auto parts, a decision heavily pushed by automakers.
Commerce Secretary Howard Lutnick stated that Mexico and Canada have made efforts to curb fentanyl trafficking, a key issue behind Trump’s tariff push. However, the White House confirmed that many imports remain subject to tariffs, with 62% of Canadian and 50% of Mexican imports not covered under USMCA rules.
Trump’s tariff policies have unsettled financial markets, with stocks sliding earlier in the week. He has promised more tariffs on auto imports, semiconductors, and pharmaceuticals in the coming weeks.
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