(Image Credit: IMAGN) Mar 4, 2025; Washington, DC, USA; U.S. President Donald Trump leaves after addressing a joint session of Congress at the U.S. Capitol on March 04, 2025 in Washington, DC. President Trump was expected to address Congress on his early achievements of his presidency and his upcoming legislative agenda. Mandatory Credit: Win McNamee-Pool via Imagn Images
Washington D.C. – U.S. President Donald Trump announced on Thursday that Mexico will not be subject to tariffs on goods covered by the United States-Mexico-Canada Agreement (USMCA) until April 2. This decision marks a notable departure from previous tariff implementations and offers relief to the Mexican economy.
While Trump has not clarified whether this suspension extends to Canada, Commerce Secretary Howard Lutnick expressed optimism that the reprieve may include both nations. Lutnick indicated in a CNBC interview that the temporary exemption for car part imports could potentially be broadened to encompass all products under the USMCA.
This announcement comes on the heels of another significant concession from Trump, who just a day prior revealed that carmakers would be spared from the newly imposed 25% import tax. These recent developments represent the second retreat from strict tariff policies within a span of two days.
In a statement shared on Truth Social, Trump elaborated on his decision following discussions with Mexican President Claudia Sheinbaum. “I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” he wrote.
The USMCA, established during Trump’s first term, includes provisions covering various sectors, such as automotive, dairy, and lumber, with scheduled reviews every six years. This latest decision will clearly have considerable implications for trade relations between the U.S., Mexico, and Canada.
