Trump pauses some Mexico and Canada tariffs for one month

The White House announced Thursday afternoon that it will suspend tariffs on all imports that are compliant with the United States-Mexico-Canada Agreement until April 2.

The pause, which was extended to imports from Mexico that adhered to the USMCA earlier Thursday, will now also cover goods from Canada that meet the trade deal’s requirements. The move builds on Wednesday’s exemption for car imports from either country.

“Today, President Donald J. Trump announced adjustments to tariffs imposed on imports from Canada and Mexico in recognition of the structure of the automotive supply chain that strives to bring production into America,” per a White House statement released Thursday.

Roughly half of Mexico imports to the U.S. are USMCA compliant, while nearly 40% of those from Canada are, CNBC reported, citing a White House official.

The delay provides some relief to the food industry, as nearly all agricultural products are included under the USMCA. Tariffs were set to increase prices on a variety of goods including avocados, tequila and tomatoes from Mexico, plus oats and canola oil from Canada.   

In a statement, American Farm Bureau Federaion President Zippy Duvall pressed Trump to permanently resolve issues with Mexico and Canada “to preserve important markets and to ensure farmers have access to the supplies they need to keep America’s pantries stocked.”

A 25% tariff on steel and aluminum imports — which food and beverage companies have warned would raise packaging costs — is still scheduled to go into effect March 12.  The U.S. is also preparing to enact a universal reciprocal tariff policy on April 2, the day the pause ends.

Trump and Mexico President Claudia Sheinbaum came to terms on a tariff pause on Thursday morning. The president said he made the decision “out of respect for” Sheinbaum while praising her cooperation in addressing fentanyl trafficking.

“We’ll continue to work together, particularly on the topics of migration and safety that include reducing illegal crossing of fentanyl to the United States as well as weapons to Mexico,” Sheinbaum said in Spanish on X, formerly known as Twitter.