- विज्ञापन -
Washington: US President Donald Trump has signed executive actions to delay the implementation of tariffs on products from Mexico and Canada covered by the USMCA free trade agreement for nearly one month. This decision represents a significant shift from the administration’s previous economic strategy, which has caused concern among markets, businesses, and consumers.
Trump’s actions followed a conversation with Mexican President Claudia Sheinbaum and discussions between Canadian officials and the Trump administration. Trump announced that the tariffs would be delayed until April 2. He explained that the delay was made as a gesture of goodwill toward President Sheinbaum, acknowledging their positive working relationship on border issues and efforts to combat fentanyl trafficking.
Sheinbaum expressed her gratitude for the respectful dialogue with Trump and highlighted that nearly all of Mexico’s trade with the US falls under the USMCA. However, a White House official clarified that about 50% of imports from Mexico and 36% from Canada are covered under the agreement, while many other items, such as avocados, are not due to high compliance costs. Goods that don’t meet USMCA standards may still be subject to the 25% tariff for the time being.
The reprieve also applies to automobiles, giving automakers more time to relocate production to the US to avoid the tariffs, though this shift is expected to be difficult and require significant investment. Additionally, while Canadian energy exports are not included in the USMCA, a lower 10% tariff on Canadian potash has been temporarily imposed to benefit farmers.
Sheinbaum noted a reduction in the amount of fentanyl seized at the US-Mexico border in February, attributing it to strengthened border controls. With the tariff delay in place, Mexico will not announce retaliatory measures against the US tariffs.
Trump also took aim at Canadian Prime Minister Justin Trudeau, accusing him of using the tariff issue for political gain. Trudeau, on the other hand, expressed concerns that Canada and the US could remain in a trade war for the foreseeable future and confirmed that retaliatory measures would stay in place unless the US fully lifts its tariffs.
The back-and-forth over tariffs has caused confusion, with many businesses uncertain about how to plan or invest given the changing policies. Trump had initially campaigned on imposing steep tariffs but has repeatedly delayed their implementation. While a delay for all USMCA-compliant goods is expected, the details about which products will be exempt from the 25% tariff are still being finalized by the US Trade Representative.
The USMCA, which replaced the North American Free Trade Agreement (NAFTA), has been a central part of Trump’s trade policy. However, the tariffs and their uncertainties have led to volatility in the stock market and increased concerns over potential economic consequences. Trump’s decision to delay the tariffs could be a response to growing economic pressures and the ongoing trade disputes.
