President Trump delays 25% tariffs on Mexican and Canadian imports for one month

Amid growing concerns of a potential trade war, U.S. President Donald Trump signed orders on Thursday, March 6, to delay new tariffs on Canadian and Mexican imports until April 2. The decision followed discussions with Mexican President Claudia Sheinbaum and negotiations between Canadian officials and the Trump administration.

Image Credit: Shutterstock

US President Donald Trump has postponed imposing 25% tariffs on many imports from Mexico and some from Canada for a month, citing concerns over economic fallout. The White House justifies the tariffs as a measure to curb fentanyl smuggling, but the decision has strained North American trade relations, impacted the stock market, and worried U.S. consumers.

President Trump stated that the tariffs could be avoided by addressing the trade deficit and emphasized that “reciprocal” tariffs will take effect on April 2.

Imports from Mexico that comply with the 2020 USMCA trade agreement will be exempt from the tariffs for a month, as will auto-related imports from Canada. However, Canadian potash will be subject to a 10% tariff, the same rate as Canadian energy products.

A White House official estimated that 62% of imports from Canada and half of imports from Mexico that do not comply with USMCA would still be taxed.

Mexican President Claudia Sheinbaum plans to announce any retaliatory actions on Sunday but has been credited by President Trump for taking strong measures against illegal immigration and drug smuggling. Mexico has intensified its crackdown on cartels, deployed troops to the U.S. border, and handed over 29 cartel leaders to American authorities.

During a press conference, Sheinbaum highlighted Mexico’s progress in meeting U.S. security demands, noting that nearly all trade with the U.S. will remain tariff-free until April 2. She also reported a 41% decrease in fentanyl seizures at the border from January to February, using U.S. Customs and Border Protection data to support her claims.

While U.S.-Mexico relations appear cooperative, tensions between the U.S. and Canada remain high due to the ongoing tariff dispute.