US President Donald Trump will delay tariffs on all goods and services under the USMCA trade agreement with Canada and Mexico, Commerce Secretary Howard Lutnick said. A decision on a one-month exemption from the 25 percent tariffs imposed on both nations is due on Thursday, March 6.
Lutnick further noted that the exemption will likely include all USMCA-conforming goods and services, consistent with the deal reached with Canada and Mexico. He added that negotiations with Mexican officials would take place on the same day, citing the cooperation the two countries have exhibited in addressing the fentanyl issue.
This move comes in the aftermath of Canada’s decision to impose tariffs on US imports from Tuesday, following the levies imposed by Trump. Prime Minister Justin Trudeau reiterated that there is no reason for the actions of Washington.
“Canada will not let this unjustified choice remain unchecked,” Trudeau stated, detailing that in the case of U.S. tariffs being implemented, Canada will retaliate with 25 percent tariffs on $155 billion in U.S. goods. This would include immediate tariffs on $30 billion of US goods, with another $125 billion in 21 days.
Trudeau continued to caution that the impact of Trump’s tariffs would be more expensive for American consumers, increasing food, gasoline, and automobile prices, in addition to potentially causing thousands of Americans to lose their jobs.
Due to tariffs the U.S. has imposed, Americans are going to have to pay extra for essential supplies and lose work. These tariffs threaten a robust trading relationship and violate the same trade deal that President Trump finalized in his previous term,” Trudeau concluded.
