Trump Pauses Most Global Tariffs, Exempts Canada and Mexico
President Donald Trump has announced a 90-day pause on most global tariffs, but this decision does not affect the existing tariffs on Canada and Mexico, according to a White House official. The pause, aimed at providing relief to American businesses and consumers, comes amidst ongoing trade negotiations and economic pressures.
The tariffs on Canada and Mexico, which were implemented as part of the U.S. strategy to renegotiate the North American Free Trade Agreement (NAFTA), remain unchanged. This clarification was provided by a White House official, emphasizing that the pause is a strategic move to assess the impact of tariffs on the U.S. economy without altering the dynamics with its North American neighbors.
The decision has sparked a range of reactions from business leaders and policymakers. Some view it as a necessary step to alleviate economic strain, while others express concern over the continued tariffs on Canada and Mexico, which could impact cross-border trade and relations.
Related issues news
What tariffs did the US impose on Canada?
On March 4, 2025, U.S. tariffs of 25 per cent on Canadian goods and 10 per cent on energy and potash exports from Canada to the U.S. came into effect. On March 12, 2025, the U.S. imposed tariffs of 25 per cent on Canadian steel and aluminum products.
Why are Canada and Mexico tariffs?
Trump has said the tariffs are intended to reduce the U.S.'s trade deficit with Canada and Mexico, force both countries to secure their borders with the U.S. against illegal immigration and fentanyl smuggling, and promote domestic manufacturing in the United States.
Are autos USMCA compliant?
However, vehicles produced prior to 2020 are not likely to meet all USMCA rules of origin. Vehicles produced on or after July 1, 2020, may meet the USMCA rules of origin. Under the USMCA Implementation Act, there are three vehicle certifications that must be provided by the producer of the covered vehicle.
What countries did Trump tariff?
While campaigning for his second term as US president, Trump pledged even larger tariffs than his first term, including 60% on China, 100% on Mexico, and 20% on all other countries. He also proposed tariffs to penalize US companies that outsourced manufacturing, such as a 200% tariff on John Deere.
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