The president paused tariffs on Canadian and Mexican goods under a trade agreement until April 2.
WASHINGTON—President Donald Trump signed two executive orders on March 6, making amendments to tariffs recently imposed on Mexico and Canada. According to the orders, goods that fall under the U.S.–Mexico–Canada Agreement (USMCA) will be exempt from tariffs until April 2. The USMCA was enacted during the first Trump administration.
“USMCA compliant goods will not have a tariff for the next month until April 2,” Commerce Secretary Howard Lutnick said in a statement. “That includes autos, and the autos were the lead in getting this deal done.”
He said Canada and Mexico have done a good job of offering the United States help in curbing fentanyl trafficking.
“On April 2, we’re going to move into the reciprocal tariffs, and hopefully Mexico and Canada will have done a good enough job on fentanyl that this part of the conversation will be off the table and will move just to the reciprocal tariff conversation,” Lutnick said.
According to a senior White House official, roughly 50 percent of goods imported from Mexico are covered by the USMCA. Nearly 38 percent of goods imported from Canada fall under the USMCA, while 62 percent do not. A significant portion of the latter is energy imports, which are subject to a 10 percent tariff.
Under the March 6 amendment, 62 percent of goods entering through Canada will still face tariffs—10 percent on Canadian energy products and 25 percent on other items not covered by the USMCA. Oil and energy from Canada covered under the USMCA will be exempt from tariffs.
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About 50 percent of goods coming through Mexico will remain subject to the 25 percent tariff.
“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 announced on Truth Social on March 6.
“This Agreement is until April 2nd. I did this as an accommodation, and out of respect for, President Sheinbaum.”
Trump also expressed his gratitude to Sheinbaum for Mexico’s efforts in curbing the flow of immigrants and fentanyl through the U.S.–Mexico border.
“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,” he wrote. “Thank you to President Sheinbaum for your hard work and cooperation!”
On March 4, Trump imposed tariffs on Canada and Mexico. He also doubled the 10 percent universal tariff on imports from China to 20 percent.
Regarding the tariffs on Canada, Trump said he had held a series of phone calls with Canadian 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 wrote on Truth Social. “So much fun to watch!”
Canada is bracing for a leadership change, as Trudeau is expected to step down soon. Canada’s next prime minister will be selected on March 9 following a leadership race within the governing Liberal Party.
In response to Trump’s message, Sheinbaum wrote on social media platform X: “Many thanks to President Donald Trump. We had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results, within the framework of respect for our sovereignties.”
She added that both countries would continue to work on resolving illegal immigration and fentanyl issues as well as the flow of weapons from the United States into Mexico.
A White House official told The Epoch Times in a statement that Sheinbaum “presented President Trump with tangible evidence that there’s been an increase in fentanyl seizures in the last 30 days and demonstrated real commitment to focus on curtailing cartels and drug trafficking.”
Canada and Mexico had previously secured a 30-day pause in the tariffs after the two countries’ leaders agreed to take measures aimed at lowering the flow of drugs and illegal immigrants into the United States.
Sheinbaum agreed to send 10,000 Mexican national guard troops to the U.S.–Mexico border. And Trudeau announced that he had implemented a $1.3 billion border plan and appointed a new fentanyl czar.
On March 5, the Trump administration provided automakers a one-month exemption from tariffs imposed on Mexico and Canada. The decision was made after the heads of Ford, General Motors, and Stellantis made the request during a phone call with Trump, White House press secretary Karoline Leavitt told reporters.
The exemption applies not only to cars made by those three Detroit-based auto manufacturers, but also to any cars from Canada and Mexico that comply with the USMCA trade deal.
Trump has repeatedly stated that he intends to impose reciprocal tariffs on all nations, starting on April 2. The president said this plan aims to create more balanced and reciprocal trade relationships while reducing the U.S. trade deficit with other countries.
“What America needs now is a solemn commitment from China, Canada, and Mexico to stop killing Americans and to take actions that will immediately stop the fentanyl carnage,” White House senior counselor for trade and manufacturing Peter Navarro told reporters during a call.
“This poison targets our prime age workforce and military age youth and is tremendously disruptive both to our economy and our society.”
