Trump suspends 25% tariffs on Canadian, Mexican imports
Shafaq News/ US President Donald Trump has suspended a 25% tariff on most goods imported from Canada and Mexico, reversing a decision made earlier.
The tariff exemptions for Washington’s two largest trading partners were set to expire on April 2—the date Trump had threatened to impose broader retaliatory duties on all US trade partners.
Trump initially imposed a 25% tariff on Canadian and Mexican imports, briefly considering an exemption for Mexico before extending the levy to both countries. The three nations are signatories to the North American Free Trade Agreement (NAFTA).
In response, Canada postponed plans to introduce a second wave of retaliatory tariffs on US goods worth 125 billion Canadian dollars (87.4 billion USD) until April 2, Finance Minister Dominic LeBlanc announced on X.
The United States has agreed to suspend tariffs on CUSMA-compliant exports from Canada until April 2nd. As a result, Canada will not proceed with the second wave of tariffs on $125B of U.S. products until April 2nd, while we continue to work for the removal of all tariffs.
— Dominic LeBlanc (@DLeBlancNB) March 6, 2025
Under the White House’s revised decision, potash—a key fertilizer for American farmers—was exempted from tariffs. However, energy products were not fully excluded, with Trump imposing a separate 10% tax on them.
A White House official told Reuters that certain energy imports from Canada fall outside the United States-Mexico-Canada Agreement (USMCA), which Trump negotiated during his first term.
The tariffs follow Trump’s January 20 national emergency declaration—made on his inauguration day—citing a rise in fentanyl overdose deaths. He accused China of exporting the deadly opioid into the US via Canada and Mexico, prompting him to impose a 20% tariff on all Chinese imports.
Trump also confirmed that a 25% tariff on steel and aluminum imports would take effect on March 12. Canada and Mexico are major suppliers of these metals to the US, with Canada alone accounting for the bulk of U.S. aluminum imports.
Additionally, Trump announced that automobiles would be exempt from the 25% tariffs on Canadian and Mexican imports—a move economists viewed as necessary to prevent inflationary pressure and economic disruption across all three countries.
Former Canadian Prime Minister Justin Trudeau, who recently left office, stated that he does not expect a swift resolution to the trade dispute with the Trump administration.
Mexico has yet to issue an official response, though President Claudia Sheinbaum held a phone call with Trump, during which he agreed to delay the tariffs.
Sources from Canada and Mexico told Reuters that officials in both countries are frustrated with the negotiations, citing a lack of clarity from Washington that has made reaching a final agreement increasingly difficult.
