Washington, March 7, (V7N) – In a surprising shift, President Donald Trump took executive action on Thursday to delay the imposition of new tariffs on imports from Canada and Mexico that fall under the United States-Mexico-Canada Agreement (USMCA). The tariffs, which were initially set to take effect this week, will now be postponed until April 2.

This decision marks the latest reversal in a trade war that began earlier this week when Trump imposed a 25% tariff on all goods imported from the two neighboring countries. The President had originally declared that there was "no room left" for negotiations, but on Wednesday, he exempted automobiles from the tariffs at the request of major U.S. automakers, including Ford, General Motors, and Stellantis.

Trump confirmed that most tariffs would go into effect on April 2, with "reciprocal" tariffs applied to goods from countries that impose fees on U.S. exports. However, a significant portion of imports from Canada and Mexico will still be subject to the tariffs. About 38% of U.S. imports from Canada and 50% of imports from Mexico are covered under the USMCA, meaning those goods will be tariff-free. However, the remaining imports from both countries will still face the 25% tariff.

Additionally, Trump agreed to exclude potash, an important fertilizer ingredient from Canada, from the tariffs, along with energy imports.

In his actions, Trump also signed an order formalizing the auto exemption, which he had previously announced. He emphasized that this temporary reprieve would allow U.S. car manufacturers to adjust before the new tariffs take effect in April.

Trump justified the tariffs as retaliation for the lack of border security in Canada and Mexico, which he argued has allowed fentanyl from China to flow into the U.S. He also imposed a separate 10% tariff on imports from China. Trump mentioned his discussions with Mexican President Claudia Sheinbaum and thanked her for their cooperation in addressing migrant and fentanyl issues.

The announcement of the tariffs earlier in the week caused a stir in the stock market, leading to concerns over rising consumer costs. Despite this, Trump remained confident, stating that the U.S. would emerge stronger in the long term.

Despite the temporary suspension, Trump continued to criticize Canadian Prime Minister Justin Trudeau, calling him "governor of Canada" and suggesting that Trudeau was using the tariff issue for political gain. Trudeau, in response to the tariffs, imposed retaliatory tariffs on U.S. goods and expressed his defiance.

Treasury Secretary Scott Bessent remarked that while Trump is open to negotiations, he would not entertain talks with leaders like Trudeau who refuse to engage constructively.

END/SMA/NYC/MSS/