US President Donald Trump has announced that tariffs on Mexican products will be delayed until at least April 2. This applies to all products listed in the USMCA (US-Mexico-Canada Agreement), which replaced the NAFTA agreement in 2020.
The USMCA, a trade agreement between the United States, Mexico and Canada, has led to the development of complex supply chains between the three countries, making it challenging to establish tariffs. The agreement covers 34 chapters, including topics such as vehicles, dairy products, wood and financial services.
According to Trump, he agreed to the delay in a conversation with Mexican President Claudia Sheinbaum, stating that Mexico will not be required to pay tariffs on anything covered by the USMCA. Sheinbaum, in turn, reported a “productive and respectful” conversation with Trump and expressed a commitment to cooperation in the fight against fentanyl trade.
US Trade Minister Howard Lutnik told CNBC that the temporary exception for vehicle parts could be extended to all USMCA products. However, there is no direct confirmation that the delay also applies to Canada, with negotiations reportedly underway. Ontario Premier, on the other hand, has stated that the province will implement a 25% tariff on electricity delivered to New York, Michigan and Minnesota, regardless of the outcome of the negotiations.