Donald Trump delays 25% tariff on Mexico, Canada imports for one month, will the rates change? 10 things to know

Amid concerns of fresh trade war, United States President Donald Trump on Thursday signed orders to postpone fresh tariffs on Canadian and Mexican imports covered by a North American trade agreement.

The move to delay newly announced tariffs for over a month came hours after Donald Trump’s discussion with Mexican President Claudia Sheinbaum, and negotiations between Canadian and Trump administration officials.

How will the fresh trade tariff exemption be implemented? When will it be implemented? Let’s understand in 10 things to know about Donald Trump trade exemptions.

Donald Trump backs off after Mexico, Canada tariff | 10 things to know

Donald Trump’s executive orders to reverse 25% trade tariffs on Mexico and Canada imports were signed on Thursday. As per the order, goods imported from the two countries under the United States-Mexico-Canada Agreement will be exempt from fresh tariffs.

-Donald Trump negotiated the United States-Mexico-Canada Agreement during his first term. The United States-Mexico-Canada Agreement (USMCA) makes the three North American countries a free trade zone.

-With the fresh executive orders, the tariffs will be delayed until April 2. The halt will provide much-needed relief to the auto industry, which was supposed to be hit the hardest by Trump's tariffs. In the auto sector, automobile parts cross North American borders of the US and Canada multiple times during production.

-Stock markets tumbled significantly after Donald Trump announced the imposition of 25 per cent tariffs on goods imported from Canada and Mexico, AFP reported.

-Not every item imported from Mexico and Canada is covered under USMCA, and those excluded from the agreement may attract 25% trade tariffs.

-About 50% of imports from Mexico and 36% of imports from Canada are covered under the agreement,  CNN reported, citing a White House official. As per the report, traders of items excluded from USMCA can apply to register under the contract.

-A White House official told reporters that about 62 per cent of Canadian imports will still face the new tariffs, although much of these are energy products hit by a lower rate of 10 per cent.

-Donald Trump announced exemption for Mexican imports after a conversation with Mexican President Claudia Sheinbaum. Later, he told reporters Thursday in the Oval Office that he had a “very good conversation” with Mexican President Claudia Sheinbaum.

-“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” Trump wrote on Truth Social Thursday.

-On Thursday, Canadian PM Justin Trudeau said that Ottawa will remain in a trade war with Washington for “the foreseeable future” even if there are “breaks for certain sectors.” “Our goal remains to get these tariffs, all tariffs removed,” Trudeau added.