President Trump announced on Thursday that he will temporarily lift tariffs on most goods imported from Mexico under the U.S.-Mexico-Canada Agreement (USMCA).
This exemption will last until April 2 and comes after concerns about economic instability following his recent tariff hikes on Mexican and Canadian imports.
Trump shared on Truth Social that he reached this decision after speaking with Mexican President Claudia Sheinbaum. He emphasised the strong relationship between the two countries and their joint efforts to control illegal immigration and the flow of fentanyl into the U.S.
Commerce Secretary Howard Lutnick also stated that the exemption would likely cover all goods traded under USMCA. This announcement initially provided a small boost to the stock market, but overall, markets remained down, with the S&P 500 falling about 1 per cent.
The temporary exemption expands upon Trump’s earlier decision to provide relief only to automakers. However, both Trump and Lutnick hinted that the tariffs could return soon, as the administration is planning new trade measures.
Trump is set to announce "reciprocal" tariffs on April 2, aiming to match the trade policies of other countries while addressing factors like taxes and currency practices.
Also Read: US to impose trade tariffs on India starting April 2: Trump
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