Following a phone call with President of Mexico, Claudia Sheinbaum, President Trump announced a month-long suspension on tariffs of Mexican goods until April 2.
While this is a slight reprieve for Mexican and American citizens who would be affected by said tariffs, there are still important questions left unaddressed. Some of these points include: whether or not the tariffs placed on Canada are still in effect, whether or not the goods imported between Trump’s initial decree on March 1 and today will be affected and what will happen after April 2.
Although nothing is set in stone yet, Canada is expected to receive the same accommodations Mexico is receiving, even after Trump attacked Prime Minister Justin Trudeau on Twitter a few days earlier, saying the Prime Minister has done a “terrible job” for Canada.
Although an exception for Canada is expected, Ontario Premier Doug Ford stated the province would go ahead with their 25% retaliatory tariff on electricity to the 1.5 million homes and businesses in New York, Michigan and Minnesota.
These tariffs seem to contradict the United States-Mexico-Canada Agreement (USMCA) established during Trump’s first term which covered cars, dairy, lumber and more. Some speculate that any products covered under the USMCA will also be exempt from the tariffs, including Canadian goods.
When first introduced, these tariffs caused a spike in American imports out of fear and instigated a trade war between the US and its neighbors as well as China. The rescission of these tariffs, while a relief for the American economy and those intertwined with it, are a cause for concern as American businesses question the validity of any of Trump’s statements.
