The White House has announced a temporary suspension of tariffs on imports compliant with the USMCA until April 2, extending to Canadian goods as well. This pause alleviates pressure on the agricultural sector and is part of broader trade negotiations between the U.S., Canada, and Mexico. Zippy Duvall from the American Farm Bureau Federation calls for permanent solutions, while steel and aluminum tariffs remain on schedule to be enacted soon.
On Thursday, the White House announced a temporary suspension of tariffs on imports compliant with the United States-Mexico-Canada Agreement (USMCA) until April 2. This decision extends the earlier exemption for compliant imports from Mexico to include those from Canada. The Trump administration is adapting tariffs, particularly in light of the automotive supply chain’s transitions aimed at boosting American production.
Approximately 50% of imports from Mexico meet USMCA compliance, alongside nearly 40% from Canada, as reported by sources. This tariff reprieve brings notable relief to the agricultural sector, as it encompasses many food products, protecting items like avocados, tequila, and tomatoes from Mexico, along with oats and canola oil from Canada from impending price increases.
Zippy Duvall, President of the American Farm Bureau Federation, urged President Trump to find a permanent solution to trade concerns with Mexico and Canada, emphasizing the need to support farmers and maintain vital supply access for essential goods.
While the pause on tariffs offers temporary relief, a 25% tariff on steel and aluminum imports is still set to commence on March 12. Furthermore, the U.S. is preparing to implement a universal reciprocal tariff policy, coinciding with the pause’s conclusion on April 2.
Early Thursday, President Trump and Mexico’s President Claudia Sheinbaum agreed on the tariff suspension, highlighting Sheinbaum’s collaboration in countering fentanyl trafficking. Sheinbaum reiterated the commitment to teamwork, particularly in addressing migration and safety issues related to illegal cross-border activities.
The recent suspension of tariffs on imports compliant with the USMCA offers significant relief for industries heavily reliant on agricultural products. However, the upcoming imposition of steel and aluminum tariffs and the universal reciprocal tariff policy are set to present challenges, necessitating continued dialogue between the U.S., Canada, and Mexico. Overall, this decision reflects a strategic approach to bolster American production while navigating trade relationships with neighboring countries.
Original Source: www.fooddive.com
