President Trump has announced a month-long suspension of tariffs on Mexican goods under the USMCA, potentially extending this reprieve to Canada. This decision follows a recent temporary exemption for carmakers and signifies a notable shift in Trump’s trade policy. Commerce Secretary Howard Lutnick expressed optimism about the applicability of the suspension to all products covered by the trade deal.
United States President Donald Trump has announced a month-long suspension of tariffs on goods from Mexico under the United States-Mexico-Canada Agreement (USMCA), lasting until April 2. While he has not confirmed whether this suspension also includes Canada, Commerce Secretary Howard Lutnick expressed optimism that it would apply to both neighboring countries.
This announcement marks a significant retreat from Trump’s previous stance, as it follows his decision to temporarily exempt carmakers from a 25% import tax, just one day after its enforcement. Lutnick conveyed to CNBC that the temporary tariff exemption for car parts from both Canada and Mexico could potentially be broadened to all products covered by the USMCA.
The USMCA, which was established during Trump’s first term, is a comprehensive trade agreement comprising 34 chapters that address a variety of sectors, including automobiles, dairy, and lumber, along with provisions for biennial reviews.
Trump shared the decision via Truth Social, 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.” Further updates on this breaking news will be provided as they become available.
The month-long suspension of tariffs on goods from Mexico under the USMCA demonstrates President Trump’s shifting approach to trade negotiations, indicating a potential easing of tensions with key trade partners. While the suspension appears to be limited to Mexico for now, there is hope for broader applicability to Canadian imports as well. The ongoing developments will be closely monitored as circumstances evolve.
Original Source: www.bbc.com
