President Trump announced today on Truth Social that all tariffs on so-called USMCA goods from Mexico will be lifted until April 2. Following the tariff update, currency pairs USDMXN and USDCAD lost approximately 0.4%, strengthening against the US dollar.
- The actions of the administration and Trump himself reassure markets that tariffs are more of a negotiation tool for the United States in the region, rather than a permanent policy measure that could push the economies of Mexico and Canada into recession.
- The president made this decision after meeting with Mexico’s President Claudia Sheinbaum. As he stated in his post, the suspension applies to all goods covered under the USMCA agreement, including agricultural products, industrial goods, automobiles, and auto parts.
- According to Commerce Secretary Howard Lutnick, approximately 50% of products from Canada and Mexico comply with USMCA standards. However, it remains unclear whether the tariff exemption for USMCA goods (the joint agreement between Mexico, Canada, and the U.S.) will also include Canada, as Trump’s statement referred exclusively to Mexico.
- Given Trump’s rhetoric and the dynamic nature of his decisions, it is possible that Canada will also be granted a temporary tariff exemption during ongoing discussions. So far, it is known that the president has offered Canada an exemption for vehicles that meet USMCA standards, and administration officials have hinted at the potential reduction of tariffs on certain agricultural products.
- Commerce Secretary Howard Lutnick was the first to report that President Trump was likely to delay the imposition of a 25% tariff on Mexico (and possibly Canada) on all goods and services covered under the USMCA trade agreement.
- The tariff suspension will last until April 2. After that, Trump intends to introduce new tariffs, including “reciprocal” duties on other countries and sector-specific levies targeting industries such as automotive, pharmaceuticals, and semiconductors.
- Trump criticized Canadian Prime Minister Justin Trudeau, accusing him of using the tariff issue as a political tool to seek re-election. Lutnick also stated that the US Sovereign Fund, announced by Trump, would not be financed by tariff revenues.
- Lutnick expects that starting April 2, the initial reciprocal tariff rates will be high but will gradually decrease. He also stated that by April 2, Mexico and Canada will have done enough to address the fentanyl crisis for that issue to be considered resolved, allowing negotiations to focus solely on reciprocal tariffs.
Justin Trudeau stated that Canada is engaged in discussions aimed at securing the complete removal of tariffs. However, until the matter is resolved, he remains prepared to engage in a trade war with the United States.
Source: xStation5
Source: xStation5
The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.
