Washington, March 7 — President Donald Trump postponed 25% tariffs on several Mexican and Canadian imports for a month, citing economic concerns amid ongoing trade disputes.
While the White House claimed the tariffs were aimed at curbing fentanyl smuggling, Trump’s proposed taxes have strained North America’s long-standing trade relationships. The move has also unsettled financial markets and raised concerns among U.S. consumers.
Speaking from the Oval Office, Trump defended the tariffs, linking them to the broader issue of trade imbalances. “Most of the tariffs go on April the second,” he said before signing the orders. “Right now, we have some temporary ones and small ones, relatively small, although it’s a lot of money having to do with Mexico and Canada.”
The orders grant a temporary exemption to certain imports that comply with the 2020 U.S.-Mexico-Canada Agreement (USMCA). Auto-related imports from Canada and some Mexican goods meeting USMCA requirements will avoid the 25% tariff until the exemption expires. However, non-compliant imports remain at risk.
A White House official, speaking on condition of anonymity, stated that approximately 62% of Canadian imports would still face tariffs. For Mexico, around half of non-USMCA-compliant imports would be taxed under Trump’s orders.
Trump confirmed he had no plans to extend the auto tariff exemption beyond this month. Meanwhile, U.S. farmers importing potash from Canada will face a 10% tariff, the same rate proposed for Canadian energy products.
Despite concerns over economic fallout, Trump maintained that the tariffs could be avoided through trade adjustments. “Reciprocal tariffs are still coming,” he said, reaffirming his intent to address trade imbalances with both countries.
