Trump Delays Tariffs on Most Mexico Products for One-Month

What Happened?

President Donald Trump has scaled back on more tariff measures after extending a one-month delay on some products from Mexico.

The temporary exemption announcement made Thursday will lift tariffs for all Mexican goods compliant with the United States-Mexico-Canada Trade Agreement (USMCA).

President Trump said he and Mexican President Claudia Sheinbaum have agreed that Mexico will not be required to pay tariffs on anything that falls under that agreement.

He added the extended measure was conducted out of respect for President Sheinbaum, as an accommodation until April 2.

'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,' Trump said in a post on Truth Social. 'Thank you to President Sheinbaum for your hard work and cooperation!'

This move comes just one day after Trump announced a one-month exemption on auto tariffs against Canada and Mexico.

Trump met with the leaders of three major U.S. automakers: Ford, General Motors, and Stellantis. He extended the 25% auto tariff under a similar courtesy.

The temporary move also applies to other companies with production facilities in the three North American countries associated with USMCA.

Trump signed the trade agreement during his first presidential term.

White House press secretary Karoline Leavitt read a Trump statement Wednesday that suggested the companies should take advantage of this time.

The president’s primary goals align with shifting more production to the U.S.

Trump stated on Truth Social Wednesday that he spoke with Canadian Prime Minister Justin Trudeau over the phone.

The conversation ended in a 'somewhat friendly manner.'

Why it Matters

The one-month delay will expire around the time Trump has pledged to implement reciprocal tariffs on all major U.S. trading partners, including allies, beginning April 2.

Ontario Premier Doug Ford recently told reporters that he and Prime Minister Trudeau are on the same page with not compromising on tariffs.

Ford suggested Canada will not remove any of its retaliatory tariff measures unless all the U.S. tariffs are removed.

Many economists have raised concerns that 25% tariffs on all other Canadian and Mexican goods could influence a trade war at some point.

In terms of tariffs, they are not paid by countries, but instead by importers.

Those importers are the U.S. companies who buy products from businesses in the targeted countries.

U.S. businesses have warned of significant damage to companies and consumers if the Trump administration continues with this strategy, according to The Guardian.

Trump has vowed to reduce the U.S. trade deficit which hit a record in January of $131.4 billion.

How it Affects You

Doubled tariffs on Chinese imports remain in place as China implemented retaliatory measures on a wide array of U.S. farm exports.

Some believe these impacts could lead to higher prices for American consumers.

Trump still views these tariff measures as 'fair' by eliminating trade imbalances that have contributed to inflation.

It will be key to monitor if these actions extend to China as signs of progress surrounding the future trade climate overall.