Trump Pauses Tariffs on Canada and Mexico for USMCA-Covered Goods

• Trump pauses 25% tariffs until April 2.
• Decision aims to protect automotive trade among North American nations.
• Businesses face uncertainty over future trade tariffs.

U.S. President Donald Trump announced on Thursday the suspension of 25% tariffs on Canadian and Mexican goods covered by the United States-Mexico-Canada Agreement (USMCA).

The measure will remain in effect for one month, until April 2, according to the White House.

The announcement was made from the Oval Office, just hours after a conversation between Trump and Mexican President Claudia Sheinbaum.

Trump described Sheinbaum as a «wonderful woman» and emphasized the importance of maintaining trade flow in the region.

Trump Pauses Tariffs Amid Automotive Industry Pressure

The tariff pause comes just a day after the White House faced intense pressure from top U.S. automakers.

General Motors, Ford, and Stellantis voiced concerns over the negative impact of these tariffs on their supply chains, which heavily rely on components from Mexico and Canada.

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In response, Trump signed an executive order delaying the tariff implementation for the auto sector.

However, the suspension is only temporary, lasting one month, which has left the industry uncertain about what will happen next.

Trump’s decision only applies to goods covered by USMCA, meaning that products not protected by the treaty remain subject to tariffs.

The USMCA, renegotiated during Trump’s first term to replace NAFTA, regulates most trade between the three countries.

Despite this temporary relief, many businesses fear that the return of tariffs in April could disrupt their operations.

The lack of clarity on future trade policies is creating an uncertain environment, potentially hindering investments and raising production costs.

Beyond the automotive sector, other industries could also face challenges if tariffs resume after April 2.

Sectors like agriculture and manufacturing, which depend on cross-border supply chains, are already on high alert.

Economic and Political Implications
Experts warn that these tariffs not only increase the cost of goods but also threaten jobs and undermine the competitiveness of U.S. businesses.

The use of tariffs as a political pressure tool has been a recurring strategy in the Trump administration, leading to trade tensions with key allies.

Trump has consistently defended tariffs, arguing that they help secure better trade deals for the U.S..

According to Trump, these measures have been crucial in pressuring Mexico on migration and border security issues.

However, economists warn that the burden of these tariffs often falls on U.S. companies and consumers.

As the April 2 deadline approaches, business leaders are hoping for clearer guidance on North America’s trade future.

SOURCE: EFE

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