Canada and Mexico avoided President Trump’s April 2 reciprocal tariffs due to existing duties and exemptions from the USMCA. While ongoing tariffs still apply, their trade relationship allows for some respite amidst a broader tariff strategy targeting various nations.
On April 2, President Donald Trump announced new reciprocal tariffs aimed at several countries, while Canada and Mexico were notably excluded. During his declaration, he expressed strong sentiments about how the U.S. has been taken advantage of economically by other nations. The tariffs imposed on imports range from 10 percent to as high as 45 percent, depending on the country, yet Canada and Mexico managed to avoid this particular imposition.
Despite their exclusion from the new tariffs, Canada and Mexico still face existing import duties. Specifically, Canada is subject to a 25 percent tariff on certain products, including fentanyl-related goods and a 10 percent tariff on energy and potash. As a result, while new tariffs were not added, the ongoing levies still impact these nations’ exports.
Goods imported under the US-Mexico-Canada Agreement (USMCA) remain exempt from the new tariffs, allowing both countries to benefit from this trade arrangement. Nonetheless, should Canada and Mexico negotiate any deals regarding the levies, they would still be impacted by Trump’s baseline tariff rates.
In response to the announcement, Canadian Prime Minister Mark Carney stated, “We are going to fight these tariffs with counter-measures. We are going to protect our workers.” Meanwhile, Mexican President Claudia Sheinbaum is expected to provide an official response during her press conference.
Interestingly, other countries such as Cuba, Belarus, North Korea, and Russia are not subject to the new tariffs due to existing sanctions which limit trade. Overall, Trump’s trade strategy encompasses a wide range of nations, with varying levels of tariff impositions depending on the country.
In summary, Canada and Mexico successfully avoided the new reciprocal tariffs announced by President Trump due to existing levies and trade agreements. While they remain subject to previous tariffs, they continue to navigate their trade relationship with the U.S. under the USMCA. Both countries are prepared to respond strategically to ongoing trade challenges.
Original Source: www.hindustantimes.com
