President Trump temporarily exempts Mexico from new tariffs after talks with Claudia Sheinbaum but vows steep penalties for Canada, citing unfair trade practices.
Trump Pauses Mexico Tariffs, Slams Canada Ahead of ‘Big One’ on April 2
Washington DC [US], March 7 – President Donald Trump has announced a temporary delay on tariffs for Mexico, following what he described as “fruitful conversations” with Mexican President Claudia Sheinbaum. However, Trump remained critical of Canada, calling it a “high-tariff nation” and reaffirming that major trade restrictions will take effect on April 2.
“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. This Agreement is until April 2nd. I did this as an accommodation and out of respect for President Sheinbaum,” Trump wrote on Truth Social.
Why the Temporary Tariff Relief for Mexico?
According to White House officials, the adjustments to trade policies with Canada and Mexico aim to protect American car manufacturers and farmers.
- USMCA-eligible goods will be exempt from existing tariffs.
- Trump cited Mexico’s cooperation on border security and drug control efforts, claiming the country is “working much harder lately” to combat fentanyl trafficking.
“We had a very good conversation. Also, we discussed drugs, and they’ve been working much harder lately. We’ve made tremendous progress on both,” Trump added regarding his discussion with Sheinbaum.
Trump Doubles Down on Canadian Tariffs: ‘We Don’t Need Their Lumber’
While Mexico received a temporary reprieve, Trump took a hardline stance on Canada, claiming that the U.S. does not need Canadian exports and justifying his upcoming tariffs.
“Canada charges us 250% for our milk products and other products, and a tremendous tariff on lumber. We don’t need their lumber. We have more lumber than they do,” he asserted.
The new trade measures, set to take effect next week, include:
- Increased tariffs on Canadian goods, including lumber and dairy products.
- An executive order to expand U.S. logging and forestry operations to reduce reliance on Canadian imports.
“I’ll be signing an executive order freeing up our forests so that we’re allowed to take down trees and make a lot of money and then re-harvest trees… We don’t need trees from Canada. We don’t need cars from Canada. We don’t need energy from Canada,” Trump declared.
Trump Takes a Jab at Trudeau
Trump’s comments come a day after he accused Canadian Prime Minister Justin Trudeau of using the U.S.-Canada tariff dispute as a political tool to boost his re-election chances.
“Justin Trudeau is using the tariff problem with the U.S. to run again for Prime Minister despite the terrible job he has done for Canada,” Trump stated on Thursday.
What’s Next? The April 2 Deadline Looms
With April 2 marking the start of major tariff changes, businesses in the U.S., Mexico, and Canada are bracing for impact.
- Will Mexico negotiate further exemptions beyond April 2?
- How will Canada respond to the increased tariffs?
- Will Trump’s executive order on U.S. forestry impact domestic and international lumber prices?
With tensions rising, the North American trade landscape could see dramatic shifts in the coming weeks.
Tags: Trump Tariffs, USMCA, Mexico Trade Policy, Canada Tariffs, Justin Trudeau, Claudia Sheinbaum, US Economy, American Farmers, Lumber Trade, Fentanyl Crisis