Trump grants one-month tariff exemption of Mexican goods under USMCA

The vast majority of Mexican products will be exempt from the 25 percent tariffs he recently imposed on imports from Mexico and most goods from Canada, the US President Donald Trump announced on Thursday.

The exemption, which will last until April 2, applies to goods that trade under the US-Mexico-Canada Agreement (USMCA), the trade pact he signed during his first term.

The president made the announcement in a post on Truth Social, stating that after discussions with Mexico’s President Claudia Sheinbaum, an agreement was reached to exempt all USMCA-compliant goods from tariffs.

“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,” Trump wrote. “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.”

Commerce Secretary Howard Lutnick echoed Trump’s remarks, suggesting that all USMCA-compliant products could be exempted for the next month. However, there was no mention of a similar exemption for Canadian goods.

Despite the temporary relief, both Trump and Lutnick have indicated that the tariff situation remains fluid, with the administration considering another round of levies next month.

The president has signaled plans to announce new “reciprocal” tariffs on April 2, aiming to match US tariffs with those imposed by other countries while addressing additional trade factors such as taxes and currency policies.

Trump originally signed the USMCA in 2020 as a replacement for the North American Free Trade Agreement (NAFTA), aiming to modernize and redefine trade relationships within North America.