President Trump Adjusts Tariffs For Autos, Goods That Satisfy USMCA

As Connecting the Dots reported last week, at 12:01 a.m. EST on March 4, the United States put into place 25 percent tariffs on most goods coming into the country from Canada and Mexico. (Canadian energy exports were subject to 10 percent penalties.) Within 36 hours, the Trump administration had scaled back some of these penalties, however. Specifically:

• On Wednesday, March 5, the White House announced automakers would have an additional month to comply with the tariffs. As The Hill explained, exemption will apply to the “big three” U.S. automakers and other companies with production facilities in the three North American countries.
• On Thursday, the president signed two separate executive orders that adjusted his tariff policy in order to allow Mexican and Canadian goods that qualify under the U.S.–Mexico–Canada Agreement (USMCA) to enter the United States duty-free. (Read those orders at this link and at this link.) Those modifications went into effect at 12:01 a.m. Friday, March 7.

It appears both carveouts will last until April 2, 2025. Read the White House’s fact sheet outlining these changes at this link. New tariffs on all products from China, which now total 20 percent, are still in place. As a reminder, as a North American trade association, the Metals Service Center Institute has opposed U.S. tariffs on Canada and Mexico.