Trump Exempts Canada and Mexico From Sweeping Global Tariffs

The USMCA shields North American partners from a 10% baseline tariff, but sector-specific duties on steel, aluminum, and auto parts persist.

• President Trump has imposed a 10% baseline tariff on global imports, sparing Canada and Mexico due to their compliance with the USMCA trade agreement.
• Canada and Mexico still face 25% tariffs on steel, aluminum, and non-USMCA-compliant automobile parts, creating challenges for key industries.
• Mexican President Claudia Sheinbaum credited the exemption to strong diplomatic ties with the U.S., while emphasizing efforts to expand USMCA compliance among exporters.
• Stellantis has temporarily paused production at plants in Mexico and Canada, citing uncertainty caused by the tariffs and supply chain disruptions.
• The USMCA remains intact, with officials in Mexico and Canada viewing the exemption as a strategic opportunity to maintain trade stability and market share.

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