President Donald Trump has issued an executive order pausing tariffs on certain imports covered under the United States-Mexico-Canada Agreement (USMCA) for one month.
The decision, announced Tuesday, temporarily exempts a significant portion of imports from Canada and Mexico from the broader tariff measures the administration put in place.
According to trade data, approximately 38% of Canadian imports and 50% of Mexican imports fall under the USMCA agreement and will be exempt from the newly imposed 25% tariff for the next month.
Elon Musk Called This Financial News ‘Terrifying’
The move comes after discussions Trump held with Mexican President Claudia Sheinbaum on Thursday and Canadian Prime Minister Justin Trudeau on Wednesday.
( @realDonaldTrump – Truth Social Post )
( Donald J. Trump – Mar 06, 2025, 11:29 AM ET )After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement. This Agreement is… pic.twitter.com/Ac4kX3BZI4
— Donald J. Trump TRUTH POSTS (@TruthTrumpPosts) March 6, 2025
This is exactly right, President Trump is spot on. The tariff issue is now being used by Trudeau and his party to stay in power. pic.twitter.com/kOvsKDKXnN
— Chris Pavlovski ☠️ (@chrispavlovski) March 5, 2025
The talks were part of ongoing negotiations with both neighboring countries regarding trade policies and border security concerns.
Earlier in the week, Trump implemented sweeping tariffs on Canadian and Mexican imports, citing their failure to take stronger action in preventing the flow of fentanyl and illegal immigration into the United States.
The tariffs were intended to pressure both countries into increasing their enforcement measures.
While the initial tariffs were broad, the administration had already granted some exceptions.
Automobiles, a major export from both countries, were exempted from the tariff hikes.
Additionally, Canadian energy exports were subjected to a lower 10% tariff rather than the full 25% rate applied to other imports.
The temporary pause on certain USMCA-covered imports is expected to give trade officials additional time to negotiate possible resolutions to Trump’s demands.
However, there is no indication yet whether the pause will be extended beyond the one-month period.
Trump has maintained a firm stance on trade and border enforcement, using tariffs as a key tool to push foreign governments to align with U.S. priorities.
His administration has repeatedly called for stronger action from Canada and Mexico in stopping illicit drug trafficking and illegal immigration.
While Canadian and Mexican officials have expressed concerns over the economic impact of the tariffs, the White House has maintained that the measures are necessary to protect American industries and national security.
President Trump made Trudeau cry on live TV over the tariffspic.twitter.com/D6v0pPT0R1
— The Pleb Reporter (@truckdriverpleb) March 6, 2025
With the partial rollback now in effect, attention will turn to whether Canada and Mexico take additional steps in response to Trump’s demands and whether further exemptions or extensions will be granted in the coming weeks.
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