President Trump has declared a month-long suspension of tariffs on goods under the USMCA, effective until April 2. Although the inclusion of Canada remains unconfirmed, Commerce Secretary Lutnick is optimistic. This announcement follows recent tariff exemptions for carmakers, highlighting a trend in negotiating trade agreements as part of the USMCA.
United States President Donald Trump has announced a month-long suspension of tariffs on goods covered by the trade agreement between the United States, Mexico, and Canada until April 2. While Trump has not confirmed if this suspension extends to Canada, Commerce Secretary Howard Lutnick expressed hope that it would include both neighboring countries. This decision marks the second retreat from tariffs within a two-day span, following Trump’s announcement that carmakers would be exempt from a 25% import tax shortly after its enforcement.
Lutnick mentioned to CNBC that the current temporary exemption for car part imports from Canada and Mexico could potentially expand to encompass all products under the United States-Mexico-Canada Agreement (USMCA). The USMCA, established during Trump’s initial term, comprises 34 chapters that address numerous sectors, including automobiles, dairy, and lumber, with a provision for reviews every six years.
On social media platform Truth Social, Trump disclosed the exemption, stating, “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.” The situation is continuously developing, and additional information is expected shortly.
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In conclusion, President Trump has temporarily suspended tariffs on goods covered under the USMCA, initially set to affect Mexico until April 2. This decision signifies a broader trend of tariff reprieves, particularly impacting the automotive industry. The implications of this policy extend to discussions surrounding trade relations with Canada, further emphasized by ongoing reviews within the USMCA framework.
Original Source: www.bbc.com
