Overview

• Donald Trump announced a temporary suspension of tariffs on goods from Mexico and Canada covered by the USMCA, effective until April 2.
• The tariffs, initially imposed earlier this week, include a 25% duty on most imports and a 10% duty on Canadian energy products.
• Trump cited discussions with Mexican President Claudia Sheinbaum and border security concerns, including drug trafficking, as reasons for the delay.
• Canada has responded with retaliatory tariffs and remains skeptical of a resolution, with tensions high between Trump and Canadian Prime Minister Justin Trudeau.
• The automotive industry, heavily reliant on cross-border trade, faces significant uncertainty, though temporary relief has been granted for USMCA-compliant vehicles.