Washington, DC – President Donald Trump signed executive actions on Thursday that have jarred markets, businesses, and consumers by delaying tariffs on all products from Mexico and Canada under the USMCA trade treaty for nearly one month.
The move followed negotiations between Canadian and Trump administration officials and a discussion between Trump and Mexican President Claudia Sheinbaum. Trump took to social media to announce the agreement with Mexico, expressing respect for President Sheinbaum and highlighting their work together on border issues, including halting illegal immigration and the influx of Fentanyl.
President Sheinbaum, in return, praised the “respectful” conversation on tariffs with Trump, underscoring that almost all of Mexico’s trade with the U.S. falls under the USMCA. However, a White House official noted that only 50% of imports from Mexico and 36% from Canada are actually covered by the trade agreement.
The delay in tariffs impacts crucial goods like autos, giving manufacturers time to shift production to the U.S. and avoid the impending tariffs. Yet, energy from Canada remains unaffected, with a 10% tariff still in place, leading to higher gas prices in the Northeast United States.
Amidst the back-and-forth on tariffs, concerns loom over the trade relationships with top partners like Mexico, China, and Canada. While Trump has made tariffs a central part of his economic policy, the uncertainty surrounding these trade disputes has led to market fluctuations, businesses holding back investments, and consumers feeling the pinch of higher prices.
Despite these economic challenges, Trump remains focused on reshaping trade agreements and curbing what he sees as unfair practices from global partners. The intricate web of tariffs, negotiations, and delays continues to impact industries, workers, and everyday Americans as the administration navigates through complex trade dynamics.