Thursday, President Trump announced a reversal on tariffs that had gone into effect earlier in the week on Canadian and Mexican goods. The granted temporary tariff exemptions are for goods covered by the United States-Mexico-Canada Agreement (USMCA) until April 2nd.
This is all due to the widespread concerns about the impact a broader trade war will have on the U.S. economy. The Associated Press says the announcement was made shortly after Commerce Secretary Howard Lutnick had said tariffs on both Canada and Mexico would likely be delayed.
Even though Trump paused these tariffs, duties still remain in place on Chinese imports into the U.S.
Senator Amy Klobuchar (D-MN) had led 14 other Senators in urging President Trump to reconsider his recently imposed tariffs that threaten American farmers, ranchers, businesses, and consumers.
In a letter to the White House, the Senators said, “At a time when farmers operate on razor-thin margins due to low commodity prices and increased input costs, the chaos and uncertainty of these tariffs threaten their livelihoods.” It also makes it harder for farmers to sell their products and for people to put food on their tables. “Farm families should not be collateral damage.”
U.S. Secretary of Agriculture Brooke Rollins praised President Trump’s action to make adjustments to tariffs imposed on imports from Canada and Mexico that fall under the USMCA in addition to a reduction of tariffs on potash, a key ingredient in fertilizers that farmers depend on.
“President Trump’s announcement which includes a reduction of tariffs on potash not already covered under the USMCA from 25% to 10% is a critical step in helping farmers manage and secure key input costs at the height of planting season while reinforcing long-term agricultural trade relations,” said Secretary Rollins. “The temporary tariff exemption for Canada and Mexico is a smart, strategic move to keep trade negotiations on course while delivering real results for American agriculture. Canada must commit to fair trade practices—including those in dairy, eggs, and poultry, and Mexico must maintain open markets. Once again, the President’s leadership ensures that U.S. farmers remain at the forefront—fighting for fair trade, lower costs, and stronger market access.”