20 hours ago
Last Updated:April 03, 2025, 07:44 IST
Donald Trump's reciprocal tariffs on various countries came into effect on April 2. However, Canada and Mexico were untouched by the new tariffs despite strained ties lately.
Donald Trump imposes reciprocal tariffs (Reuters Image)
US President Donald Trump’s “discounted reciprocal tariffs" came into effect on Wednesday, however, two of the USA’s neighbours, Canada and Mexico, were excluded from the new tariffs despite strained ties lately, in a respite to both nations.
However, it does not mean Canada and Mexico do not face any of Trump’s actions at all.
Trump announced the reciprocal tariffs on Wednesday on nations, stating that the US has been looted and pillaged by other countries – “friends and foes alike". The tariffs start with a baseline of 10% and go up to as high as 45% on imports.
How Did Canada And Mexico Escape New Trump’s Tariffs?
Both the countries were untouched by the April 2’s new reciprocal tariffs, however, they have not got a free pass. Goods from both countries already have tariffs imposed upon them, while the tariffs on car and related components will come into effect on Thursday.
The reason Canada and Mexico were excluded from the April 2 tariffs is that they are already facing earlier duties — 25% on certain goods linked to fentanyl and 10% on Canadian energy and potash.
Earlier this year, Trump imposed a 25% tax on imports from Canada and Mexico, triggering a trade war and hiking tensions with the neighbours. The US President has also announced a lower rate for Canadian energy. These charges will remain in place. However, goods that enter the US under the US-Mexico-Canada Agreement (USMCA) will continue to be exempt, AFP reported.
Even if Canada and Mexico sign deals to reduce or remove some tariffs, they will still be bound to follow Trump’s baseline tariff rate of 10%.
Location :Washington D.C., United States of America (USA)
First Published:April 03, 2025, 07:44 IST
News world How Did Canada And Mexico Escape Trump's April 2 Reciprocal Tariffs Despite Strained Ties?
