President Donald Trump is considering a delay in imposing new tariffs of 25 percent on Canada and Mexico for all goods and services that are compliant with the existing trade deal between the North American countries. Commerce Secretary Howard Lutnick mentioned that the pause in tariffs is likely to extend beyond automakers to cover all USMCA compliant goods and services.
Significant Retreat in Tariffs
This potential update would signify a significant retreat from the tariffs that recently came into effect. It contradicts previous statements by Trump, who had indicated that the tariffs would apply without any exclusions or exemptions.
One-Month Reprieve for Auto Manufacturers
Recently, the White House announced a one-month reprieve for all auto manufacturers in North America that adhere to the rules outlined in the USMCA. Lutnick mentioned that Trump will make a decision on the scope of tariff exemptions soon, with expectations leaning towards a moderate approach.
Engagement with Canadian and Mexican Leaders
Following a phone call with Canadian Prime Minister Justin Trudeau, described as ‘somewhat’ friendly, Trump is set to engage with Mexican leaders as well. Discussions include potential exemptions for key agriculture products, expanding beyond the initial focus on autos.
Continued Trade Negotiations
The developments in tariff delays and exemptions highlight the ongoing negotiations within the North American trade landscape. Stay informed on the latest updates regarding trade relations between the US, Canada, and Mexico.
