Trump Decides to Delay Tariffs for Benefit of Mexico and Canada

March 8, 2025 TruthUSA

U.S. President Donald Trump has decided to temporarily pause some tariffs on Canada and Mexico with the aim of assisting both countries and American automakers.

Trump initially imposed 25 percent tariffs on imports from Canada and Mexico on March 4. However, he announced a one-month pause on USMCA products on March 6, stating that the tariffs would resume on April 2.

During an interview with Fox News on March 7, Trump revealed that he implemented the short-term pause to support Canada, Mexico, and U.S. car manufacturers.

He explained, “I wanted to help Mexico and Canada to a certain extent. We’re a big, big country, and they do a lot of business with us. Whereas in our case, it’s much less significant. We do very little with Canada compared to them.”

Additionally, Trump expressed his intention to assist American car manufacturers. The auto industry has stated that tariffs will raise operational costs in the United States. Therefore, Trump granted the auto sector a one-month pause on March 5.

Trump has expressed interest in increasing vehicle production within the United States.

In addition to the initial round of tariffs designed to pressure Canada and Mexico into addressing the flow of fentanyl and illegal immigration through their borders, Trump has implemented 25 percent tariffs on steel and aluminum imports from all countries starting on March 12.

Furthermore, he has instructed his officials to review current trade agreements and propose reciprocal tariffs by April 2 for any trade practices by other countries deemed unfair.

He emphasized, “What they charge us, we charge them. It’s a significant move, but we will retaliate in kind.”

On March 7, Trump announced his intention to impose reciprocal tariffs on Canadian lumber and dairy products to match the duties imposed by Canada on these products exported to the United States.

Canada operates a supply management system for dairy, chicken, egg, and turkey products to regulate imports and stabilize prices for farmers and consumers.

Trump also indicated plans to revise environmental standards to promote more lumber production in the United States. Currently, the U.S. imposes a 14.54 percent tariff on lumber imported from Canada, with the possibility of increasing tariffs over time.

He reiterated his stance that the U.S. has been taken advantage of by nations and companies worldwide.

He stated, “We’ve been exploited like never before, and we’re going to rectify that. We will reclaim what is rightfully ours and prevent further exploitation.”

Canada’s Finance Minister Dominic LeBlanc has indicated that Ottawa is willing to engage in early discussions regarding the U.S.-Mexico-Canada free trade agreement, which is set for joint review in 2026.

LeBlanc expressed a preference for comprehensive negotiations rather than sector-by-sector discussions over several weeks. He emphasized the need for swift action to prevent market disruptions caused by China’s predatory pricing practices.

On March 8, China imposed tariffs on over $2.6 billion worth of Canadian agricultural and food products in response to Canada’s tariffs on Chinese-made electric vehicles, steel, and aluminum products.

This article includes contributions from Kimberly Hayek and Reuters.

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