[CTC] Trump announces pause on Mexican tariffs for goods entering under USMCA

[Arthur Stamoulis]

Trump announces pause on Mexican tariffs for goods entering under USMCA 
By Hannah Monicke, Inside U.S. Trade
March 6, 2025
 
President Trump on Thursday announced a one-month pause for the 25 percent tariffs on Mexican goods for products that enter the U.S. under the U.S.-Mexico-Canada Agreement – “out of respect” for Mexican President Claudia Sheinbaum’s cooperation on addressing migration and fentanyl at the border, he said. 
 
A 25 percent tariff rate on all Mexican goods – along with 25 percent tariffs on Canadian goods, except for 10 percent on Canadian energy – went into effect earlier this week <https://insidetrade.com/node/182489>; the Trump administration also imposed an additional 10 percent duty on Chinese goods on top of the 10 percent announced last month.
 
On Wednesday, Trump announced a monthlong reprieve <https://insidetrade.com/node/182510> from the tariffs for U.S. automakers.
 
On Thursday, in a post on his social media site, Trump said tariffs on “anything that falls under the USMCA Agreement <https://truthsocial.com/@realDonaldTrump/posts/114116432894994278>” will not be required until April 2.  
 
“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. This Agreement is until April 2nd,” he said.
 
Commerce Secretary Howard Lutnick earlier on Thursday told CNBC that the one-month pause for goods coming into the U.S. under USMCA was expected to apply for both Canada and Mexico <https://www.cnbc.com/video/2025/03/06/commerce-secretary-howard-lutnick-usmca-goods-and-services-will-likely-be-excluded-from-tariffs-for-one-month.html>. 
 
“It’s likely that it will cover all USMCA-compliant goods and services, so that which is part of President Trump’s deal with Canada and Mexico, are likely to get an exemption from these tariffs,” he said. “The reprieve is for one month.” 
 
But Trump has only announced the pause for the U.S.’ southern neighbor, calling it an “accommodation” for Mexico and praising Sheinbaum’s work with his administration on the issues Trump has cited as the reason for the tariffs – migration and the influx of fentanyl. 
“I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl,” he said. “Thank you to President Sheinbaum for your hard work and cooperation!” 
 
According to Sheinbaum, the April 2 deadline is meant to align with the administration’s plan to announce reciprocal tariffs <https://insidetrade.com/node/182353> on that date.
 
“As mentioned by President Trump, Mexico will not be required to pay tariffs on all those products within the USMCA. This agreement is until April 2, when the United States will announce reciprocal tariffs for all countries,” she said in a post on X <https://x.com/claudiashein/status/1897692261175247095?s=61>, according to an informal translation. 
 
Sheinbaum also echoed the praise for the joint work done so far. 
 
“We had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results, within the framework of respect for our sovereignties,” she said. “We will continue to work together, particularly on migration and security issues, which include reducing the illegal crossing of fentanyl into the United States, as well as weapons into Mexico.” 
 
Following the duties going into effect this week, Sheinbaum had said retaliatory measures would be announced on Sunday <https://insidetrade.com/node/182495>. Canadian Prime Minister Justin Trudeau, meanwhile, responded immediately with Canadian tariffs on a range of U.S. goods; Trump subsequently pledged to raise the duties on Canada in response <https://insidetrade.com/node/182499>. Ottawa also has challenged the tariffs at the World Trade Organization <https://insidetrade.com/node/182512>.
 
Notably, Trump did not have the same effusive praise for his northern counterpart. In a separate post <https://truthsocial.com/@realDonaldTrump/posts/114116271026986660>, the president accused Trudeau of “using the Tariff problem” to gin up support for another term as prime minister. Trudeau has previously announced he will step down as prime minister once a replacement is chosen. 
 
“Believe it or not, despite the terrible job he’s done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister,” Trump said. “So much fun to watch!” 
 
The president made a similar claim on Wednesday following a call between the two leaders, saying Trudeau was “trying to use the issue to stay in power.” 
 
Canada, Trump argued, had not done enough <https://insidetrade.com/node/182510> to stem the flow of fentanyl. 
 
Democratic lawmakers have decried the tariffs, and subsequent changes, as chaotic – along with arguments that they will raise costs and exacerbate inflation. On Wednesday, ahead of the newly announced pause for Mexican goods under USMCA, Senate Minority Leader Chuck Schumer (D-NY) accused the administration of “changing their plans by the hour.” 
 
“The administration has obviously not thought through these tariffs. They seem to be changing their plans by the hour,” he said on the Senate floor. “Even this uncertainty is extremely harmful to the economy. It makes it impossible for businesses to plan ahead. It depresses spending, slows growth, and eats away at consumer confidence.” -- Hannah Monicken (hmonicken at iwpnews.com <mailto:hmonicken at iwpnews.com>) 
 
Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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