US President Donald Trump signed orders postponing 25% tariffs on many imports from Mexico and some imports from Canada until April 2, partially reversing duties imposed earlier in the week. The exemption focused on goods covered by the United States-Mexico-Canada Agreement, though substantial trade remained subject to tariffs.
For Mexico, imports complying with the USMCA trade pact were excluded from the 25% tariff for a month. On the Canadian side, qualifying automotive imports also received the reprieve, while Canadian potash was set at a 10% rate, the same level applied to energy products. A White House official estimated that about 62% of Canadian imports would still face the new duties because they were not USMCA-compliant; half of noncompliant Mexican imports would also be taxed.
Trump announced the change after speaking with Mexican President Claudia Sheinbaum. He credited her government with progress on migration and drug smuggling and described the pause as an accommodation. Sheinbaum said the two countries would continue working together on migration, security and reducing fentanyl trafficking. She cited US border data showing fentanyl seizures fell more than 41% from January to February.
Canada's response remained more confrontational. Prime Minister Justin Trudeau said Canada would continue pressing until all tariffs were removed. Ontario Premier Doug Ford said a planned 25% surcharge on electricity exported to 1.5 million Americans would proceed while the tariff threat remained.
Trump said he still intended to introduce reciprocal tariffs on April 2. In a later interview, he said the temporary exemption was intended partly to help US carmakers through the transition, and indicated he did not plan another extension.
The rapid policy change added to business uncertainty. PBS reported that tariff threats had unsettled financial markets, weakened consumer confidence and raised concern that employers could delay investment and hiring. Most economists cited there expected import duties to increase prices and slow growth. The Yale Budget Lab estimated that tariffs on Canada, Mexico and China could add one percentage point to inflation and reduce average household disposable income by about $1,600.
The March 6 orders therefore narrowed the immediate impact without ending the dispute. Qualifying trade gained a month, while noncompliant goods remained exposed and all three governments prepared for another tariff decision in April.
