Trump Grants Tariff Exemption Till April 2 For Mexican Imports

On Thursday, US President Donald Trump announced a temporary one-month exemption from tariffs for Mexican imports that comply with the rules of the United States-Mexico-Canada Agreement (USMCA), the trade deal he signed during his first term.

Writing on Truth Social, Trump stated that Mexican goods would be exempt from the recently imposed 25 percent tariffs until 2nd April. These tariffs, introduced earlier this week, apply to all Mexican imports and most Canadian goods.

Photo Credit: AP/PTI

The exemption will cover a significant portion of North American trade and comes amid recent stock market volatility, reported NYT.

"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," Trump wrote.

"Our relationship has been a very good one, and we are working hard, together, on the border, both in terms of stopping illegal aliens from entering the United States and, likewise, stopping fentanyl," he added.

Commerce Secretary Howard Lutnick made similar remarks on Thursday morning, suggesting that all products traded under USMCA would likely be exempt. However, Trump's announcement did not mention any exemption for Canadian imports.

Following Lutnick's statement, stock markets showed a slight recovery, though the S&P 500 remained about 1 percent lower for the day.

This move expands upon a previous one-month exception granted to automakers importing goods under USMCA rules, which had initially failed to meet investors' expectations.

Both Trump and Lutnick have hinted that this tariff relief may be temporary, as the administration is considering imposing further trade restrictions next month.

The former president has indicated that "reciprocal" tariffs will be introduced on 2nd April, aligning US tariffs with those imposed by other nations while factoring in additional trade-related issues such as taxation and currency policies.

"My expectation is the president will come to an agreement today, and hopefully, we will announce this today, that USMCA-compliant goods will not face tariffs for the next month, until 2nd April," Lutnick stated.

Trump originally signed the USMCA in 2020 as a replacement for the North American Free Trade Agreement (NAFTA).