An exemption for USMCA-qualifying goods from 25% tariffs on goods from Mexico will also take effect March 7, alongside the USMCA exemption for Canada, according to an executive order signed today by President Donald Trump. Like the Canada order, it also lowers the tariff for potash that doesn’t qualify for the USMCA exemption to 10%.
Vehicles that meet the USMCA rules of origin will be able to enter the U.S. duty-free again, for one month, two White House spokespeople said March 5.
White House spokeswoman Karoline Leavitt told reporters that the president asked her to tell reporters that after he spoke with Detroit's Big Three automakers: "We are going to give a one-month exemption on any autos coming through USMCA. Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month, so they are not at an economic disadvantage."
From corporate giants to small companies, in farming, manufacturing and retail, Americans said tariffs on Canada and Mexico were damaging their businesses and driving up costs for customers.
Going from zero tariffs on most Canadian and Mexican imports to 25% convulsed Capitol Hill and foreign capitals, with some Republicans diverging from the president's protectionist message and Democrats universally using the action to attack Trump as the reason prices will go up.
The National Council of Textile Organizations, joined by its Canadian and Mexican counterparts, urged President Donald Trump not to impose 25% tariffs on imports in the region.
President Donald Trump, perhaps seeking to clarify remarks he made in the Oval Office the previous day (2502260032), posted in the morning Feb. 27 that the fentanyl-related tariffs "scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled."
Jamieson Greer, the former chief of staff to the U.S. trade representative during the first Trump administration, was confirmed by the Senate on Feb. 26, with a 56-43 vote. Five Democrats supported him, including both Michigan senators and Sens. John Fetterman of Pennsylvania, Sheldon Whitehouse of Rhode Island and John Hickenlooper of Colorado. Sen. Rand Paul, R-Ky., voted no.
Jeffrey Gerrish, former deputy U.S. trade representative for Asia, Europe and the Middle East, told the House Ways and Means Trade Subcommittee that the time has come to undo the "colossal mistake" of granting permanent normal trading status.
A dairy exporters trade group and a former USMCA negotiator say the state-to-state dispute panels under the NAFTA replacement are only a partial success.