The White House will suspend tariffs on USMCA-compliant imports from Canada and Mexico until April 2. This relief aims to support the food industry by preventing price increases on essential goods. Ongoing issues with tariffs on steel and aluminum are noted, alongside U.S.-Mexico cooperation on various trade and security matters.
The White House announced the suspension of tariffs on imports compliant with the United States-Mexico-Canada Agreement (USMCA) until April 2. This extension applies to goods from Canada, which join previously announced exemptions for imports from Mexico. This action is in response to the structure of the automotive supply chain, aiming to bolster domestic production.
Approximately 50% of imports from Mexico and nearly 40% from Canada comply with the USMCA, according to a White House official. This tariff pause offers significant relief to the food sector, encompassing many agricultural goods which include staples like avocados, tequila, and tomatoes from Mexico, along with oats and canola oil from Canada.
Zippy Duvall, president of the American Farm Bureau Federation, urged President Trump to resolve ongoing trade issues permanently to support farmers and maintain market access. Meanwhile, a 25% tariff on steel and aluminum is still slated to commence on March 12, which could increase packaging costs for food and beverage companies.
Furthermore, a universal reciprocal tariff policy is set to begin on April 2, coinciding with the end of the current tariff pause. Trump and Mexico’s President Claudia Sheinbaum agreed upon the pause earlier, with Trump acknowledging Sheinbaum’s collaboration in tackling issues such as fentanyl trafficking as a driving factor. Sheinbaum emphasized their ongoing cooperation on migration and reducing illegal trafficking of substances between the two nations.
The White House’s decision to suspend tariffs until April 2 provides temporary relief for imports compliant with the USMCA, benefiting industries reliant on cross-border trade. Although the focus is on agriculture, forthcoming tariffs on steel and aluminum may still impact costs significantly. Continued cooperation between the U.S. and Mexico highlights a larger dialogue surrounding trade and security concerns.
Original Source: www.fooddive.com
