Trump to Announce Exemptions from Tariffs on Canada and Mexico

The Trump administration is set to announce significant updates regarding the tariffs imposed on Canada and Mexico. Commerce Secretary Howard Lutnick indicated in an interview that President Donald Trump is considering adjustments that may provide relief for certain industries, particularly automobiles. While the existing 25% tariffs will remain in place, there is a possibility that specific sectors could be exempted.

Lutnick emphasized that the final decision rests with President Trump and that while tariffs will continue, some categories may be excluded from these high rates. The administration is reviewing the U.S.-Mexico-Canada Agreement (USMCA) to assess compliance from both neighboring countries. Although Lutnick mentioned that there could be exemptions, he clarified that it is not a straightforward removal of tariffs.

The announcement's timing remains uncertain, as Trump has no public engagements scheduled for later in the day. However, Lutnick noted that broader reciprocal tariffs are scheduled to take effect on April 2, suggesting a comprehensive tariff strategy that could escalate global trade tensions.

Following the imposition of tariffs, Canada’s Finance Minister Dominic LeBlanc firmly stated that Canada seeks the complete removal of these tariffs, rejecting any partial relief. The recent tariff increases have already led to retaliatory measures from Canada and China, with Mexico poised to respond as well.

The Trump administration has framed these tariffs as necessary measures to combat drug trafficking and address trade deficits, but the immediate effects on the stock market and consumer prices are causing alarm. Trump's assertion that the economic adjustments would be minimal contrasts with the growing anxiety among businesses and consumers alike.