White House Suspends Tariffs on USMCA-Compliant Imports from Mexico and Canada

The White House has announced a one-month suspension of tariffs on USMCA-compliant imports from Mexico and Canada until April 2, providing relief to the agriculture industry. The pause addresses concerns regarding the automotive supply chain and highlights collaborative efforts between the U.S. and Mexico to tackle fentanyl trafficking. A forthcoming 25% tariff on steel and aluminum remains scheduled for March 12.

On Thursday, the White House announced the suspension of tariffs on all imports in compliance with the United States-Mexico-Canada Agreement (USMCA) until April 2. This pause extends to Canadian goods that meet the trade agreement’s requirements, alongside an earlier exemption for compliant car imports from Mexico.

President Donald J. Trump recognized the need for these adjustments in tariffs to accommodate the automotive supply chain intended to enhance production in the United States, as stated in a press release from the White House. Approximately 50% of imports from Mexico and nearly 40% from Canada comply with the USMCA.

The tariff delay is expected to bring temporary relief to the food industry, as it encompasses nearly all agricultural products covered by the USMCA. An increase in tariffs could have adversely affected the prices of various goods, including avocados and tequila from Mexico and oats and canola oil from Canada.

American Farm Bureau Federation President Zippy Duvall urged Trump to find a lasting solution to issues with Mexico and Canada, emphasizing the importance of access to essential supplies for farmers. Meanwhile, a 25% tariff on steel and aluminum imports is still set to take effect on March 12, which food and beverage companies have warned may raise packaging costs.

In a separate agreement, President Trump and Mexico’s President Claudia Sheinbaum agreed on the tariff pause, demonstrating mutual respect and collaboration. Sheinbaum expressed a commitment to addressing migration and reducing the illegal trafficking of fentanyl and weapons between the countries.

In conclusion, the temporary suspension of tariffs on USMCA-compliant imports aims to alleviate economic pressures, particularly for the agriculture sector, while fostering cooperation between the United States and its neighbors. As the pause culminates on April 2, ongoing discussions between leaders may influence future tariff policies and bilateral relations further.

Original Source: www.fooddive.com