U.S. President Donald Trump has signed orders to broaden the list of goods exempt from the newly imposed tariffs on imports from Canada and Mexico.
This marks the second instance in as many days where the administration has adjusted its tariff policies concerning its two largest trading partners, introducing uncertainty for businesses and financial markets.
On Wednesday, the President announced a temporary exemption for automakers from the 25% import tariffs, just a day after their implementation.
This move was met with appreciation from Mexican President Claudia Sheinbaum, while Canada’s finance minister indicated that Canada would pause its planned second round of retaliatory tariffs on U.S. products.
Canadian Prime Minister Justin Trudeau described a recent phone conversation with President Trump as “colourful,” noting that the U.S. president used strong language during their discussion on tariffs.
Trudeau acknowledged that a trade war between the two allies is likely to persist in the near future, despite some targeted relief, stating, “Our goal remains to get these tariffs, all tariffs, removed.”
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President Sheinbaum characterised her conversation with Trump as “excellent and respectful,” highlighting mutual efforts to address issues such as the flow of the opioid fentanyl from Mexico into the U.S. and the trafficking of firearms in the opposite direction.
The exemptions apply to goods traded under the United States-Mexico-Canada Agreement (USMCA), which was signed during Trump’s first term.
Products currently entering the U.S. under the pact’s provisions include televisions, air conditioners, avocados, and beef.
Additionally, tariffs on potash, a vital component for fertilisers used by American farmers, have been reduced from 25% to 10%.
A White House official indicated that approximately 50% of U.S. imports from Mexico and 62% from Canada may still be subject to tariffs, though these figures could change as companies adjust their practices in response to the new regulations.
The administration continues to advance its tariff agenda, with plans to announce recommendations for tailored, “reciprocal” trade duties on various countries worldwide on April 2.
