U.S. President Donald Trump has announced a one-month delay on the 25% tariffs for goods covered under the US-Mexico-Canada Agreement (USMCA), such as agricultural products, potash, and autos, affecting approximately 49% of Mexico’s and 38% of Canada’s exports to the U.S.
This decision follows talks with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau, who are collaborating with the U.S. on security and immigration issues. However, tensions remain, with Canada maintaining retaliatory tariffs and Ontario continuing a 25% electricity tariff on U.S. imports.
The pause aims to avoid economic disruptions amid inflation concerns and slow economic growth, but markets have reacted negatively, with stock prices continuing to decline. The move is a temporary reprieve as the U.S. prepares to impose tariffs on steel and aluminum in mid-March.
