President Donald Trump announced on Thursday a temporary pause on tariffs for select products from Mexico and Canada, partially rolling back a trade policy implemented just two days earlier.
The one-month exemption will suspend tariffs for all Canadian and Mexican goods that comply with the United States-Mexico-Canada Agreement (USMCA), a free trade pact signed during Trump’s first term.
According to White House officials, the exemption applies to:
50% of imports from Mexico
38% of imports from Canada
A significant portion of these USMCA-compliant goods includes motor vehicles and auto accessories, officials say.
However, Trump reaffirmed his commitment to imposing tariffs on foreign steel and aluminum products, set to take effect next week.
“We’re not looking at that,” Trump said when asked whether he would delay those tariffs.
Trump said the easing of tariffs on Mexico followed a conversation with Mexican President Claudia Sheinbaum, highlighting their cooperation on border security and drug trafficking.
“Our relationship has been a very 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. Thank you to President Sheinbaum for your hard work and cooperation!” Trump wrote on Truth Social.
Minutes later, Sheinbaum responded on X, describing their call as “excellent and respectful”, adding:
“We agreed that our work and collaboration have yielded unprecedented results, within the framework of respect for our sovereignties.”
Trump’s announcement came shortly after Commerce Secretary Howard Lutnick signaled the exemption during an interview Thursday morning.
“That which is part of President Trump’s deal with Canada and Mexico is likely to get an exemption from these tariffs,” Lutnick told CNBC.
Despite the tariff relief, Wall Street reacted negatively, with markets continuing to slide amid uncertainty over Trump’s broader trade policies.
The Dow Jones Industrial Average fell 425 points (1%)
The S&P 500 dropped 1.7%
The tech-heavy Nasdaq plunged 2.6%
With Trump’s trade policies still evolving, businesses and investors remain on edge, awaiting further clarity on U.S. trade relations with key global partners.
