Trump pauses tariffs on Mexican goods until April 2 after talks with President Claudia

US President Donald Trump on Thursday (March 6) announced major tax relief for Mexico until April 2. The American leader said Mexico won’t be required to pay tariffs on goods that come under the trade pact between the two countries and Canada.

“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 on his Truth Social platform.

The US president didn’t announce a similar relief for Canada but BBC quoted a senior Canadian official as saying that an exemption of “same nature” was expected for the northern neighbour too.

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Earlier on Wednesday (March 5), Trump exempted carmakers from the 25 per cent import duty, just a day after it went into effect on March 4.

President Claudia in a statement thanked Trump for an “excellent and respectful” call, promising that her administration would continue cooperating with the US on security and migration. She added that the two nations would also work together to stem the flow of the opioid fentanyl from Mexico into the United States.

“We had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results, within the framework of respect for our sovereignties,” Sheinbaum said in a post on X.

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The USMCA, signed in 2020 after years of negotiations, replaced the 1994 NAFTA agreement. The economies of the US, Canada, and Mexico are deeply connected, with goods worth billions crossing their borders daily.

The introduction of tariffs has led to trade tensions between the US, its neighbours, and China. While Trump argues that tariffs will protect American industries and boost manufacturing, economists warn they could lead to higher prices for US consumers.

In response to Trump’s 25 per cent tariffs, Canada and Mexico had imposed retaliatory import levies.

Meanwhile, the US Commerce Department reported that imports surged in January due to concerns over the new tariffs.

(With inputs from agencies)