Canada and Mexico Exempt from Trump’s April 2 Tariff Announcements

On April 2, 2024, President Trump announced reciprocal tariffs, exempting Canada and Mexico from new charges. Existing tariffs remain, including a 25% duty on their goods. Their exclusion relates to prior tariffs under the US-Mexico-Canada Agreement, while both countries may face new levies, especially on automotive products.

On April 2, 2024, President Donald Trump announced a series of reciprocal tariffs, citing that the United States had been “looted, pillaged, raped, plundered” by other nations. Notably, Canada and Mexico were exempt from these new tariffs, which featured rates starting at 10 percent and extending up to 45 percent. This exemption does not imply an absence of tariffs altogether; existing tariffs, including a 25 percent duty on Canadian and Mexican goods, remain in effect.

Canada and Mexico’s exclusion from these tariffs is linked to the prior fentanyl-related tariffs of 25 percent, which continue to apply alongside lower rates on specific Canadian goods such as energy. Goods entering the United States under the US-Mexico-Canada Agreement are also exempt from the new tariffs, as confirmed by news agency AFP.

Nevertheless, both countries must prepare for potential new levies on automotive products, set to take effect shortly. Canadian Prime Minister Mark Carney expressed his commitment to fight these tariffs with counter-measures to protect local labor forces. In Mexico, President Claudia Sheinbaum is also expected to address the situation in an upcoming press conference.

Interestingly, Russia is not on Trump’s tariff list, as they, along with Cuba, Belarus, and North Korea, already face sanctions that limit trade. For other nations affected by the tariffs, rates vary significantly, with notable countries facing steep tariffs, including India at 26 percent and China at 34 percent.

In conclusion, while Canada and Mexico have successfully avoided the new wave of reciprocal tariffs introduced by President Trump on April 2, 2024, they still contend with existing tariffs and potential new levies. The exemption stems from prior duties that remain enforced under the US-Mexico-Canada Agreement. Future negotiations may alter their trade landscape, as both nations remain committed to protecting their economic interests amid ongoing tariff discussions.

Original Source: www.hindustantimes.com