MercoPress. South Atlantic News Agency

Trump postpones tariffs on Mexican items at least until April 2

Trump's good rapport with Sheinbaum was the reason for this reversal, the Republican leader explained

US President Donald Trump announced a temporary exemption from new 25% tariffs for goods from Mexico covered under the 2020 United States-Mexico-Canada Agreement (USMCA). The Republican leader adopted the measure following a telephone conversation with Mexican President Claudia Sheinbaum. The exemption, effective until at least April 2, reverses tariffs imposed earlier this week, aimed at addressing fentanyl trafficking and trade imbalances.

Trump cited cooperation on border security and his good relationship with Sheinbaum as reasons for the carve-out. “I did this as an accommodation, and out of respect for, President Sheinbaum,” Trump said on Truth Social.

“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!” he added.

“In February alone, the reduction in fentanyl seizures on the United States side of the border with Mexico was 41.5%. [Trump] didn't know about this graph until I sent it to him,” Sheinbaum said during a press conference Thursday.

US Commerce Secretary Howard Lutnick told CNBC that goods from both Canada and Mexico that are part of the USMCA agreement would be shielded from the 25% tariffs as early as Thursday. His announcement slowed a Wall Street selloff Thursday morning. “My expectation is the president will come to the agreement today that USMCA-compliant goods will not have a tariff for the next month until April 2,” Lutnick said. USMCA-included automakers celebrated the move that would have driven up the cost of vehicles. The UMCA treaty signed during Trump's first term in office lets trade flow between the North American nations without tariffs as long as they abide by what is stated therein.

The tariffs were initially levied to curb fentanyl flows, primarily via Mexico. and address a record US trade deficit, which hit US$ 131 billion in January.

“Massive Trade Deficit with the World, just announced, compliments of Sleepy [former US President] Joe Biden! I will change that!!!” Trump also posted.

“Justin Trudeau, of Canada, called me to ask what could be done about Tariffs,” Mr. Trump posted on Truth Social. “I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped,“ Trump also pointed out.

Canada argues that oil exports drive the imbalance. Prime Minister Trudeau's Government claims fentanyl crossings from its border are minimal and therefore insisted the tariffs were unjustified. ”He said that it’s gotten better, but I said, ’That’s not good enough,’” Trump stressed, while Trudeau accused him of using fentanyl as an excuse to impose tariffs on Canada.