- Trump imposes global car tariffs but temporarily exempts Mexico and Canada under USMCA terms.
- President Sheinbaum praised the exclusion, citing diplomatic collaboration and mutual respect.
- Other US trade partners face tariffs despite existing agreements, sparking backlash and uncertainty.
President Donald Trump’s decision to impose additional tariffs on all imported goods, including a 25% tax on cars and parts, starting April 2, has resulted in the world’s economies being in serious turmoil. However, despite all the rhetoric and threats against Mexico and Canada, who were among the first to feel his wrath, the 47th (and 45th) POTUS excluded the two neighboring countries from the new, “reciprocal” tariffs.
Mexican President Claudia Sheinbaum was obviously very pleased by this move: “There are no additional tariffs to Mexico and that is good for the country,” Sheinbaum said last Thursday in a press conference.
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While Mexico and Canada were supposed to be hit with the same tariffs as other countries, that decision was later paused on products covered by the free trade United States-Mexico-Canada Agreement (USMCA) that was signed during Trump’s first term. Nevertheless, cars are still subject to a separate 25% tax imposed earlier, but are exempt, at least for now, from the new tariffs.
Sheinbaum attributed Trump’s decision to her government’s relationship with the US administration: “This has to do with the good relationship we have constructed with the US government, based on collaboration but with respect,” CNN reports.
Mexico‘s Economy Secretary Marcelo Ebrard shared his President’s optimism: “President Sheinbaum’s strategy has worked”, he said. “We (Mexico) have a preferential treatment.” And facts seem to support this view, as other countries with trade agreements with the US were still hit by the new taxes.
Ebrard added that the next month or so will be crucial in determining what will happen in the future: “We estimate it will take around 40 days of negotiations,” he said. “That’s the reality we’re in. We’re going to consolidate that (preferential) position.”
On its part, the White House commented that the exemption and the tariffs on non-USMCA-related products would remain in place until the President decides the fentanyl and illegal immigration issues, which he was adamant would have to be addressed as soon as possible, have been resolved.