President Donald Trump said he will exempt Mexico from his new 25% tariffs on any goods and services that fall into the US commercial agreement known as USMCA, offering relief to an important US commercial partner.
“This agreement is valid until April 2,” Trump said in a social media post on Thursday after talking to Mexican President Claudia Sheinbaum. “I did it as an accommodation and out of respect for President Sheinbaum.”
The decision came shortly after the secretary of commerce, Howard Lutnick, to say that Trump was studying an exemption for Mexican and Canadian assets under the deal, saying that he expected Trump to officially decide the size of the postponement on Thursday (6).
“If you lived under the US agreement of Donald Trump, Mexico and Canada, you will receive a relief from the tariffs now. And if you choose to get out of it, you did it at your own risk, and today is when this account arrives, ”Lutnick said in an interview with CNBC.
It is unclear if Trump will extend the total pause of the USMCA to Canada, although he has already said that they are imported under the trade agreement. Any exemption implemented should last until April 2, when Trump expects to impose a new round of tariffs, including “reciprocal rights” on countries around the world and specific tariffs for sectors such as car imports, pharmaceutical products and semiconductors.
US actions fell when markets opened on Thursday in New York as Trump’s tariff plans continue to scare investors. The actions reduced some losses after Lutnick’s comments, while WTI futures fell to the session minimum and the Mexican weight and the Canadian dollar valued.
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Lutnick said that both Mexico and Canada offered us a huge amount of work on Fentanil. ” The president linked the rates as well as a 20% tariff over China, the flow of illicit fentanil and the US migration.
Trump spoke earlier with Canadian Prime Minister Justin Trudeau. The US President had previously offered an exemption from one month to USMCA -covered cars, and administration officials were considering exempting certain agricultural imports.
Development is the latest in a frantic week that saw Trump apply general rates of 25% to Canada and Mexico, except for Canadian energy, which faced a 10% rate. He also doubled his recent fare over China, from 10% to 20%.
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This caused a strong reaction, including a round of Canada’s retaliatory tariffs on US goods. The White House said on Wednesday it would give car manufacturers a postponement of one month in car tariffs and car parts that comply with the USMCA. Lutnick’s comments extend this to other sectors.
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