After implementing a general 25% tariff on goods from Mexico and Canada earlier this week, U.S. President Donald Trump signed an executive order exempting these tariffs until April 2. This exemption covers a significant portion of imported products under the United States-Mexico-Canada Agreement (USMCA), including strategic sectors such as the automotive industry.

During the signing of the executive order in the Oval Office at the White House, Trump remarked: “I spoke with the President of Mexico, a wonderful woman, today. We helped them with their short-term tariff issue. We had a very good conversation”.

Additionally, the President noted that issues related to border security and controlling the flow of drugs were discussed, emphasizing the significant progress made in combating the illegal entry of people and illicit substances.

Since March 4, U.S. Customs has been applying a general 25% tariff on all imports from Mexico and Canada, with the exception of Canadian energy-related goods, which are subject to a 10% tariff. In this context, Commerce Secretary Howard Lutnick stated in a prepared announcement: “We must stop the flow of fentanyl manufactured in Canada and Mexico that enters our country”.
President Trump further indicated that on April 2 a reciprocal tariff will be implemented, trusting that by then both Mexico and Canada will have taken effective measures to address this challenge.

During the pause period, both governments have taken initiatives to strengthen cooperation on migration, national security, and drug trafficking. In particular, the Mexican government has reinforced its northern border with 10,000 National Guard personnel and has taken legal actions against major criminal organizations to curb the flow of drugs into the United States.

International Reactions

Various international organizations and governments have assessed the measure as a step toward stability in regional trade relations, highlighting the importance of maintaining a continuous and constructive dialogue to address global challenges in security and trade.

International Economic Impact

The temporary elimination of tariffs is expected to help lower costs for businesses, facilitate the continuity of commercial operations, and promote investment in strategic sectors. This easing of trade barriers could enhance the competitiveness of key industries, energizing bilateral trade between the United States, Mexico, and Canada.

At Calderón Marín, we are committed to providing comprehensive and personalized advice on commercial and tax matters. If you require further information or support to adapt your strategy to this new context, do not hesitate to contact us; we will be delighted to assist you.