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Trump Confirms Mexico & Canada Exempt From Tariffs On USMCA-Compliant Goods... Until April 2nd

President Trump has announced that both Mexican and Canadian goods compliant with the US-Mexico-Canada Agreement (USMCA) will be exempt from a 25% tariff until April 2nd.

• Trump confirmed the exemption during interactions with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.

• The exemption is part of a strategy addressing concerns related to illegal immigration and fentanyl trafficking.

• After April 2nd, the administration plans to introduce new tariffs, potentially impacting a broader range of nations.

• Currently, it is estimated that 62% of Canadian imports will still face tariffs, primarily on energy products, while about half of Mexican goods will be affected.

• Commerce Secretary Howard Lutnick mentioned that if improvements are made by Mexico and Canada on fentanyl issues, the new tariffs may not take effect as planned.

• There is uncertainty about whether these exemptions may change, as compliance with new trade rules is underway.

The temporary tariff exemptions for Mexico and Canada aim to strengthen trade relationships while addressing immigration and drug trafficking challenges. The situation remains dynamic, with decisions on future tariffs expected soon. The outcome on April 3rd could significantly affect trade between the U. S. and its northern neighbors. 

https://www.zerohedge.com/political/stocks-bounce-lutnick-hints-usmca-compliant-tariff-exemptions

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