Tariffs that began this week on imports from Mexico have been suspended on some goods until April 2, President Trump announced Thursday.
Trump posted on social media that he agreed to not tax Mexican goods that trade under the rules of the North American free trade agreement known as USMCA. President Claudia Sheinbaum of Mexico said the decision came after she showed him how Mexico had limited the amount of fentanyl flowing into the U.S., The New York Times reported. Fentanyl was one of the reasons Trump gave for the tariffs.
Trump’s post did not mention Canada, also hit this week with a 25% tariff on most goods. Tariffs on China rose from 10% to 20%. Commerce Secretary Howard Lutnick told CNBC Trump was considering an exemption for Canadian goods.
On Wednesday, Trump granted U.S. automakers that trade under USMCA a one-month exemption from the tariffs following concerns raised by Ford, General Motors and Stellantis. The three automakers said the levies are unsustainable for domestic car manufacturing, The Associated Press reported.
Ford CEO Jim Farley had previously described tariffs as “devastating.” Asked if the 30-day suspension was enough for the industry to adjust, White House press secretary Karoline Leavitt relayed Trump’s words to the automakers.
“He told them that they should get on it, start investing, start moving, shift production here to the United States of America where they will pay no tariff,” Leavitt said.
Trump defended his tariffs as they went into effect on Tuesday, according to The New York Times, claiming they are needed to protect “the soul of our country.” He has acknowledged they could cause prices to rise for Americans.
“Tariffs are about making America rich again and making America great again, and it is happening and it will happen rather quickly,” he said. “There will be a little disturbance, but we are OK with that. It won’t be much.”
Experts worry the tariffs affect international trade agreements and America’s relationship with its allies.
“This is a day where the United States stopped seeing trade as force for mutual benefit, and began seeing it as a tool of economic warfare,” Edward Alden, a senior fellow at the Council on Foreign Relations, told The Times, describing the duties as “a fundamental attack on the economic well being of our closest neighbors.”
