Canada and Mexico Breathe Easy: Exemption from Trump’s April 2 Tariffs

Canada and Mexico evade Donald Trump’s reciprocal tariffs announced on April 2, despite facing existing tariffs. The Trump administration’s tariffs target various countries, with Canada and Mexico’s exemptions being tied to preexisting duties under the US-Mexico-Canada Agreement. Both countries are preparing responses to potential impacts on trade and industry.

On April 2, Donald Trump announced new reciprocal tariffs, aiming to address trade imbalances with various countries, stating that America has been “looted, pillaged, raped, plundered” by foreign nations. Canada and Mexico were notably exempted from these tariffs, which began at a 10 percent rate and could reach up to 45 percent for other nations.

Despite their exemption from the new tariffs, Canada and Mexico still face existing tariffs. Specifically, Canadian goods are subjected to ongoing 25 percent tariffs related to fentanyl, alongside a 10 percent levy on Canadian energy and potash. Furthermore, as part of the US-Mexico-Canada Agreement, these goods will continue to benefit from exemptions, though new automotive levies are set to take effect.

Canadian Prime Minister Mark Carney remarked on the situation, indicating that Canada intends to combat these tariffs with countermeasures to protect its workforce. Meanwhile, Mexican President Claudia Sheinbaum is expected to respond officially during a press briefing.

Noteworthy is that other nations such as China, India, and members of the European Union are facing significant tariff rates ranging from 10 to 45 percent, illustrating an aggressive stance by the Trump administration against various international trade partners, particularly those with large trade surpluses with the US.

In summary, Canada and Mexico successfully avoided Donald Trump’s new reciprocal tariffs on April 2 due to existing tariffs already in place. However, they remain subject to various tariffs from prior measures, particularly on specific goods. Both nations are preparing to address the implications of these tariffs while continuing to benefit from exemptions under the US-Mexico-Canada Agreement.

Original Source: www.hindustantimes.com