Donald Trump Exempts Canada, Mexico Goods from Tariffs
The exemptions apply to a wide range of goods, including car parts and fertiliser ingredients, and are expected to have a positive impact on the economies of Canada and Mexico. The move is also seen as a significant step towards strengthening trade relations between the US and its neighbours, with potential implications for global trade policies.
US President Donald Trump has signed orders exempting more goods from tariffs on Canada and Mexico, marking the second time in two days he has rolled back his taxes on imports from the US's two biggest trade partners. The exemptions apply to goods shipped under the US-Mexico-Canada Agreement (USMCA) and include items such as car parts and potash, a key ingredient for fertiliser.
The move has been welcomed by Canadian Prime Minister Justin Trudeau, who described the development as a "colourful" conversation with Trump. However, Trudeau also cautioned that a trade war between the two allies was likely for the foreseeable future. The US tariffs, which were introduced to protect American industry and boost manufacturing, have raised fears of economic turbulence and triggered a 1.8% drop in the S&P 500 index.
The White House has continued to promote its plans for other tariffs, promising action on 2 April, when officials will unveil recommendations for tailored, "reciprocal" trade duties on countries around the world. US President Donald Trump has announced that Mexico will not be required to pay tariffs on goods that fall under the United States-Mexico-Canada Agreement (USMCA) until April 2. This exemption does not apply to Canada, despite US Commerce Secretary Howard Lutnick stating that a comparable exemption for Canada was likely.
The development is seen as a significant step towards easing trade tensions between the US and its two biggest trade partners. However, the exemption for Mexico has raised questions about the fate of Canadian goods, with Trudeau calling for a comprehensive agreement to resolve the issue. As the trade dynamics continue to evolve, businesses and investors remain cautious, awaiting further developments on the trade front.