U.S. President Donald Trump has announced a major reversal of tariffs on Mexico, granting the country a one-month exemption from the newly imposed 25% tariffs on all imports.
Trump attributed the decision to Mexico’s commitment to halting the flow of fentanyl across the U.S.-Mexico border.
The move follows discussions between Trump and Mexican President Claudia Sheinbaum. In a statement on Truth Social, Trump said, “After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay tariffs on anything that falls under the USMCA Agreement.”
The exemption, which lasts until April 2, was made “out of respect” for Sheinbaum, according to Trump.
He praised the working relationship between the two countries, emphasizing joint efforts to curb illegal immigration and drug trafficking.
While Mexico secured a temporary exemption, Canada remains subject to the tariffs. Trump took a swipe at Canadian Prime Minister Justin Trudeau, accusing him of using the trade dispute as a political tool.
“Believe it or not, despite the terrible job he’s done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister. So much fun to watch!” Trump wrote.
However, Commerce Secretary Howard Lutnick suggested in a CNBC interview that Canada could receive a similar exemption, though no official decision has been made.
In a related development, the White House announced that tariffs on auto imports from Mexico and Canada will also be temporarily lifted.
“We spoke with the Big Three auto dealers. 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,” said White House Press Secretary Karoline Leavitt.
The decision follows a meeting between Trump and executives from General Motors, Ford, and Stellantis, as the administration weighs targeted tariff relief.
Commerce Secretary Lutnick hinted that Trump may adjust certain tariffs but confirmed that trade restrictions will remain in place overall.