President Donald Trump has announced that Mexico will not be required to pay tariffs on goods covered by the United States-Mexico-Canada Agreement (USMCA) until April 2, when the agreement expires.
Trump made the announcement on his Truth Social platform, stating:
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.
The former president emphasized that the decision was made out of respect for Sheinbaum and as an accommodation to maintain strong relations between the two nations. He further noted that both the U.S. and Mexico are working closely to curb illegal immigration and combat fentanyl trafficking, highlighting cooperation on border security as a shared priority.
“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. Thank you to President Sheinbaum for your hard work and cooperation!”
The announcement follows heightened pressure from the Trump administration on both Mexico and Canada to strengthen border security and crack down on smuggling operations. Earlier this week, Trump imposed a 25% tariff on all goods imported from Mexico and Canada, with one exception—Canada’s energy sector, which was subject to a 10% tariff.
Trump’s Secretary of Commerce, Howard Lutnick, revealed that he had been in discussions with both Mexican and Canadian officials, who were trying to show that they’ll do better in addressing Trump’s concerns. Lutnick hinted that the administration was open to rolling back some of the newly implemented tariffs based on the countries’ cooperation.
A day after imposing the tariffs, Trump granted a one-month exemption for Mexico’s and Canada’s auto industries, according to CNN.
White House Press Secretary Karoline Leavitt explained that the exemption was issued at the request of companies associated with USMCA, ensuring they would not face an economic disadvantage due to the new trade barriers.
At the request of the companies associated with USMCA, the president is giving them an exemption for one month so they’re not at an economic disadvantage, Leavitt stated.
On Thursday, Lutnick suggested that Canada may also receive broader tariff relief for goods covered by the USMCA, though Trump’s statement only explicitly mentioned Mexico.
While Trump has not yet officially included Canada in the temporary exemption for all USMCA-covered goods, Lutnick told CNBC that it is likely that Canada will receive similar relief.
It’s likely that it will cover all USMCA-compliant goods and services, so that which is part of President Trump’s deal with Canada and Mexico are likely to get an exemption from these tariffs, Lutnick explained.
The temporary tariff relief signals a willingness from the Trump administration to negotiate with both Mexico and Canada in exchange for stricter enforcement of border security and anti-smuggling measures. However, with the USMCA set to expire in just over a month, trade relations between the three North American countries remain uncertain.