Trump Pauses Mexico, Canada Tariffs for USMCA-Compliant Goods Until April

Researched by Industrial Info Resources (Sugar Land, Texas)--On Thursday, President Donald Trump delayed tariffs on products from Canada and Mexico that fall under the United States-Mexico-Canada Agreement (USMCA) until April 2.

All USMCA-compliant goods will be exempt from the 25% tariff Trump announced March 4. A White House official told CNBC about 50% of Mexican imports and 38% of Canadian imports are covered by the trade agreement.

Trump signed an executive order in order to alter the tariffs. "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."

Among the products covered under the USMCA are vehicles that have 75% of its content produced in North America. Trump also lowered the tariff on potash exports from 25% to 10%.

Other products covered by the USMCA include construction materials such as lumber and timber.

Canadian Prime Minister Justin Trudeau told reporters Thursday the federal government will "continue to engage with our American counterparts ... our goal remains to get these tariffs, all tariffs removed."

The new development comes after Trump on Wednesday paused tariffs for automobiles compliant under the USMCA, after implementing a 25% tariff on most imports from Canada and Mexico; 10% tariff on all U.S. imports of Canadian energy; and 20% tariff on goods from China, earlier in the week.

Trump still is planning to move ahead with "reciprocal" tariffs beginning April 2, although Mexican President Claudia Sheinbaum said Thursday her country should be excluded. "What he has said is, [the U.S.] does not have tariffs on countries they import goods from. However, there are countries that have very high tariffs on U.S. products. He has said that's not fair. Those are his words," Sheinbaum said at a news conference. "In Mexico's case, almost everything is without tariffs. We don't charge them tariffs, and they don't charge us tariffs."

The existing 10% tariff on Canadian energy imports poses a threat to the flow of energy, including crude oil and electricity, between the country and the U.S. For more background on the tariffs, see March 6, 2025, article - Trump Tariffs Continue, but Automakers will See Relief.

Ontario Premier Doug Ford told CNN on Thursday he was following through with his threat to place a 25% tariff on the power provided to 1.5 million homes and businesses in New York, Michigan and Minnesota as of Monday. "Honestly, it really bothers me we have to do this. I don't want to do this. I want to send more electricity, more critical minerals, more oil."

Trump and outgoing Canada Prime Minister Justin Trudeau spoke for around 50 minutes Wednesday but that conversation did not end in any sort of resolution. Following the conversation, and again Thursday morning, Trump suggested Trudeau was using the trade war to stay in power, although the latter has repeatedly said he will step down; a new leader for the Liberal Party will be elected this Sunday.

Canada on March 4 responded to Trump's tariffs by including 25% tariffs against $155 billion of American goods--starting with an immediate tariff on $30 billion worth of goods. They will remain in place until the U.S. tariffs are withdrawn.

However, in a Thursday post on X, Canadian Minister of Finance Dominic LeBlanc said the country is pausing a planned second round of tariffs--on 4,000 U.S. products worth $125 billion.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).