By Sama Marwan,
U.S. President Donald Trump has suspended tariffs on certain products from Mexico and Canada, temporarily rolling back significant parts of a policy enacted two days earlier that imposed a 25% tax on goods from both countries.
White House officials told ABC News that the one-month exemption will lift tariffs on all Canadian and Mexican goods that comply with the United States-Mexico-Canada Agreement (USMCA), a free trade deal between the three nations.
According to the report, around 50% of Mexican imports and 38% of Canadian imports qualify under the USMCA. Officials also noted that automobiles and auto accessories are part of the agreement.
Despite suspending tariffs on many goods from Canada and Mexico, Trump stated after the announcement that he remains committed to implementing tariffs on foreign steel and aluminum starting next week. When asked at the White House about the halted tariffs, he responded: “We are not considering that.”
In a post on Truth Social, Trump explained that the tariff relief on some Mexican goods followed a conversation with Mexican President Claudia Sheinbaum, saying:
“Our relationship has been very strong, and we are working hard together at the border—both in stopping illegal migrants from entering the U.S. and halting fentanyl. Thank you, President Sheinbaum, for your hard work and cooperation!”
Minutes later, Sheinbaum responded on X (formerly Twitter), writing:
“We had an excellent and respectful call in which we agreed that our collaboration has led to unprecedented results, all while respecting our sovereignty.”
Trump’s announcement came shortly after Commerce Secretary Howard Lutnick stated that the one-month tariff delay on Mexico and Canada would likely apply to all products meeting USMCA requirements.
The one-month delay on auto tariffs caused U.S. automakers’ stocks to rise on Wednesday, though the biggest companies in the sector saw slight declines on Thursday.
The American Automotive Policy Council (AAPC)—a trade group representing Ford, General Motors, and Stellantis—welcomed the temporary tariff exemption.
Matt Blunt, President of the Auto Manufacturers Association, told ABC News:
“American automakers—Ford, General Motors, and Stellantis—applaud President Trump for recognizing that vehicles and parts meeting the high content requirements of the USMCA should be exempt from these tariffs.”
