On April 2, 2024, Donald Trump announced new reciprocal tariffs but exempted Canada and Mexico, allowing these countries to avoid added tariffs while still facing existing levies. The USMCA continues to protect goods from Canada and Mexico, although further modifications are possible depending on trade negotiations. Trump’s tariffs vary widely for other nations, especially targeting China with high rates.
On April 2, 2024, U.S. President Donald Trump announced a series of reciprocal tariffs designed to address perceived economic grievances against other nations, stating that the U.S. has been “looted, pillaged, raped, plundered.” Notably, this announcement excluded Canada and Mexico, who were relieved to avoid the new tariffs that started with a baseline rate of 10% and escalated to as much as 45%.
Despite their exemption from the new tariffs, Canada and Mexico are not completely free from trade challenges. Existing tariffs on imports from both countries remain, including Trump’s earlier imposed 25% duties on certain goods, alongside a 10% tariff on Canadian energy and potash. New tariffs on automotive products are scheduled to take effect soon.
The U.S.-Mexico-Canada Agreement (USMCA) will continue to shelter goods entering the United States from these countries. However, should Canada and Mexico negotiate deals concerning these levies, they will still need to contend with Trump’s baseline tariff rates. Canadian Prime Minister Mark Carney expressed intentions to counteract these tariffs for the sake of protecting local workers.
In a broader context, Trump’s reciprocal tariffs encompass varying rates applied to other nations as well, including a 26% tariff on India, a 20% on the EU, and even higher rates on countries like Vietnam, Japan, South Korea, Taiwan, and Thailand. Meanwhile, China faces a substantial 34% tariff, which could reach up to 54% when combined with previous tariffs. Trump’s promised measures during his campaign indicate an intention to levy tariffs as high as 60% on Chinese imports.
In summary, Canada and Mexico successfully evaded Donald Trump’s April 2 reciprocal tariffs, though they still face significant existing duties. The USMCA framework provides some protection from the new tariffs, but ongoing negotiations may alter their status. Trump’s broader tariff strategy targets various countries with significantly structured rates, particularly focusing on economic grievances toward China.
Original Source: www.hindustantimes.com
