6 March: U.S. President Donald Trump signed an executive order on Thursday postponing new tariffs on imports from Canada and Mexico for one month, granting a temporary reprieve for goods covered under the United States-Mexico-Canada Agreement (USMCA).
This decision marks another shift in Trump’s escalating trade war, which began earlier this week when he imposed sweeping 25% tariffs on all imports from the two neighboring countries. The suspension applies only to USMCA-compliant goods and will remain in effect until April 2, when his administration plans to introduce reciprocal tariffs on all nations imposing duties on U.S. exports.
According to the White House, about 38% of U.S. imports from Canada fall under the USMCA, meaning 62% of Canadian goods will still face tariffs. Similarly, roughly half of all Mexican imports will continue to be affected.
Trump announced the tariff suspension in front of reporters at the Oval Office and later confirmed it on social media, stating that he had reached the decision after speaking with Mexican President Claudia Sheinbaum. He praised the cooperation between the two nations, particularly in efforts to curb illegal immigration and fentanyl trafficking.
The move follows Trump’s decision on Wednesday to exempt automobiles from the newly imposed tariffs at the request of major U.S. automakers, amid mounting concerns about economic instability. The tariffs had triggered market turbulence and raised fears of higher consumer prices.
Sheinbaum acknowledged the tariff delay in a statement, describing her conversation with Trump as “excellent and respectful,” and reaffirmed Mexico’s commitment to working with the U.S. on border security issues.
Trump escalates attacks on Trudeau despite tariff reprieve
While Canada also benefited from the temporary suspension, Trump ramped up his criticism of Prime Minister Justin Trudeau, whom he has mockingly referred to as the “governor of Canada.”
On Truth Social, Trump accused Trudeau of using the trade war as a political maneuver ahead of the next election. “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. “So much fun to watch!”
Trudeau, in response to the tariffs, announced a 25% retaliatory duty on American goods, calling Trump’s trade measures “a very dumb thing to do.” He reaffirmed that Canada would not back down, stating, “Canadians are reasonable and polite, but we will not back down from a fight.”
U.S. Treasury Secretary Scott Bessent, speaking at The Economic Club of New York, also weighed in, claiming Trump remains open to tariff negotiations but not “if you want to be a numbskull like Justin Trudeau and say, ‘Oh, we’re going to do this.'”
The trade dispute between the two allies remains tense, with uncertainty looming over how negotiations will unfold before the April 2 deadline.
