Mexico and Canada have been given great relief by US President Donald Trump. The Trump administration announced that Mexico and Canada would not have to pay tariffs on some items till April 2. This exemption has been given to both countries for goods that come under the United States-Maxico-Canada Agreement (USMCA).
President Trump on Thursday signed the documents that will postpone the tariffs on all the products in Mexico and Canada for about a month, which fall under the USMCA Free Trade Treaty. The step has been taken after Trump’s discussion with Mexican President Claudia Shinbam and a conversation between Canadian-Trump administration officials.
US Commerce Secretary Howard Lutnik had already indicated that the President could cut some tariffs. Lutnik had said that the President could reduce some of the 25 percent tariffs imposed on Canada and Mexico in early 5 March, as the two countries were trying to show that they would do better.
Negotiations between Trump and Mexican President
There was a conversation between Trump and Mexican President Shinbaum about the tariff. Trump gave this information on his social media platform Truth. He wrote, “After a conversation with Mexico President Claudia Sheenbaum, I have agreed that Mexico will not have to give tariffs on any items under the USMCA agreement. This discount will not have to be effective till April 2.”
Reacting to this, Mexican President Claudia Sheenbaum described the conversation with Trump as excellent and respectable. He said that both countries will continue cooperation on issues of security and immigration. Shinbaum further said, “Our cooperation has given unprecedented results and we will work together in further respecting our sovereignty.”
Apart from this, Sheenbaum also said that the US and Mexico will continue to work together to control illegal phentanail smuggling. Phantanail, which has been a major cause of drug addiction in the US, has been a major issue of tariff talks.
Trump imposed so much tariff on Canada and Mexico
Let us know that the new 25 percent tariffs imposed by US President Trump on imported goods from Canada and Mexico came into effect from Tuesday. Also, the fee on Chinese goods was doubled to 20 percent. As a result, the three countries announced retaliation against the US, which could affect economic growth and increase prices for Americans, which are still upset for years of high inflation.
Trump will be levied 25 percent tax on imports from Canada and Mexico with the first steps to put tariffs on his largest trading partners, while 10 percent tariffs will be levied on energy products from Canada. Also, in February, the 10 percent tariff imposed on Chinese imports by Trump will increase to 20 percent.