Washington, March 7, 2025 – The Europe Today: President Donald Trump signed executive actions on Thursday, postponing tariffs on products covered by the United States-Mexico-Canada Agreement (USMCA) for nearly a month. This marks a significant shift from the administration’s previous stance, which had sparked concerns among businesses and consumers.
The decision followed discussions between President Trump and Mexican President Claudia Sheinbaum, as well as negotiations with Canadian officials. Trump announced on Truth Social that Mexico would not be required to pay tariffs on goods under the USMCA, delaying their imposition until April 2.
“I did this as an accommodation, and out of respect for President Sheinbaum,” Trump stated, highlighting the cooperative efforts between the two nations in tackling border security and drug trafficking.
President Sheinbaum, in a post on X, expressed appreciation for the discussion and emphasized that nearly all of Mexico’s trade with the U.S. falls under the USMCA framework.
However, a White House official clarified that only about 50% of Mexican imports and 36% of Canadian imports are officially covered under USMCA, with many goods, such as avocados, being excluded due to compliance costs. Despite this, such products have largely been treated as if they were tariff-free.
Among the USMCA-covered goods are automobiles, which Trump announced would also receive a one-month reprieve from tariffs. The administration stated that this delay would provide automakers time to shift production to the U.S., although experts suggest that such a transition would require extensive investments and planning.
With the new deadline set for April, businesses and trade officials will continue to assess the implications of the evolving tariff policies.
