• 27/03/2025 13:46

What tariff concessions did Trump make to Canada and Mexico?

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On March 6, 2025, US President Donald Trump signed an executive order that exempted certain goods from Canada and Mexico from tariffs until April 2. This decision concerns goods not covered by the USMCA trade agreement, which regulates trade relations between three countries – the United States, Mexico and Canada.

URA-Inform reports on new decisions by world leaders, citing The Hill.

Despite these concessions, Trump has promised to impose reciprocal tariffs on other countries if they continue to impose tariffs on American goods.

The tariffs do not apply to products covered by the USMCA, signed in 2020. The agreement regulates trade in industries such as automobiles, agriculture, including dairy products, and protection of cross-border data flows. The agreement is valid for 16 years, but its terms can be reviewed every six years.

U.S. Commerce Secretary Howard Lutnick said that if Mexico and Canada make additional efforts to combat fentanyl, which is becoming a serious threat to U.S. public health, that aspect of the discussion could be taken off the table. In that case, the focus would shift solely to mutual tariffs between the countries.

White House officials have clarified that many goods will still be subject to tariffs during this time. According to them, about 62 percent of Canadian imports are not covered by the USMCA and therefore subject to tariffs. The situation is similar in Mexico, where about 50 percent of goods do not comply with the agreement.

The White House has stressed that the tariff policy is not part of a trade war, but a response to the serious threat posed by fentanyl. The drug kills thousands of people in the United States every year, and Trump has said that combating it is a key objective of his tariff policy.

Thus, the United States will continue to use economic measures to protect its economy and ensure national security, viewing tariffs as a tool to combat fentanyl and other threats.

Read also: Intelligence in Ukraine: What has changed after the suspension of information exchange with the US.

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