US President Donald Trump on Thursday exempted goods from both Canada and Mexico under a North American trade pact for a month from the 25 per cent tariffs that he had imposed earlier this week, the latest twist in fast-shifting trade policy that has whipsawed financial markets and business leaders.
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The exemption, which will expire on April 2, covers both of the two largest US trading partners.
Trump had earlier only mentioned an exemption for Mexico, but the amendment he signed to his order for 25 per cent levies on imports from both – which went into effect on Tuesday – covers Canada as well.
For Canada, the amended order also excludes duties on potash, a critical fertiliser for US farmers, but does not fully cover energy products, on which Trump has imposed a separate 10 per cent levy.
A White House official said that is because not all energy products imported from Canada are covered under the US-Mexico-Canada Agreement on trade that Trump negotiated in his first term as president.
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Trudeau tells Trump that tariffs are ‘very dumb,’ says Canada is striking back
Trudeau tells Trump that tariffs are ‘very dumb,’ says Canada is striking back
Trump imposed the tariffs after declaring a national emergency due to deaths from fentanyl overdoses, asserting that the deadly opioid and its precursor chemicals make their way from China to the US via Canada and Mexico. Trump has also imposed tariffs of 20 per cent on all imports from China as a result.