Donald Trump delays tariffs on USMCA goods from Mexico until April 2 amid trade war

US President Donald Trump on Thursday said Mexico won't be required to pay tariffs on any goods that fall under the United States-Mexico-Canada Agreement (USMCA) on trade until April 2. This is the second one-month postponement the US president has announced since first unveiling the import taxes in early February.

The reprieve would apply to goods that are compliant with the trade agreement Donald Trump negotiated with Canada and Mexico in his first term.

"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. 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. Thank you to President Sheinbaum for your hard work and cooperation! This Agreement is until April 2nd," Trump posted on Truth Social.

Donald Trump's announcement comes after his Commerce Secretary, Howard Lutnick, said tariffs on both Canada and Mexico would “likely" be delayed.

Donald Trump’s on-again, off-again tariff threats have roiled financial markets, lowered consumer confidence, and enveloped many businesses in an uncertain atmosphere that could delay hiring and investment.

Lutnick emphasised that reciprocal tariffs, in which the United States applies import taxes on countries that tariff US exports, will still be implemented on April 2.

US markets bounced off their lows for the day shortly after Lutnick spoke.

Lutnick said on Thursday in a television interview that President Donald Trump will “likely” suspend 25 per cent tariffs on Canada and Mexico for most products and services for a month, broadening an exemption that was granted on Wednesday only to autos.

Mexico and Canada have “done a good job offering us ever more work" to show that they are moving to combat shipments of fentanyl, a key demand Trump has made in return for permanently removing the 25 per cent duties.

But Lutnick suggested that the number of US fentanyl overdose deaths will be the key metric the administration will focus on when determining whether Canada and Mexico have done enough.

“We need to see fentanyl deaths decline, that is the metric I am focused on," he said.

Trade War with Canada

Canadian Prime Minister Justin Trudeau has warned that a trade war with the United States could persist, despite a temporary one-month suspension of 25 per cent tariffs by the Trump administration. Trudeau acknowledged the pause as a "promising sign" but stressed that tariffs remain in place, necessitating Canada’s continued retaliatory measures.

(With agency inputs)