08 Apr Trump Tariffs Take Effect But Also Take Pause
President Trump’s 25% tariffs on imports from Canada and Mexico, with an additional 10% tariff on goods from China were officially announced as of 4 March 2025.
In response, Mexican President Sheinbaum has declared that her government plans to respond to the U.S. tariffs with its own tariff and non-tariff measures. Canadian Prime Minister Justin Trudeau also retaliated with tariffs on $30 billion worth of American goods immediately and promised an additional $125 billion in products from the U.S. will face levies in the coming weeks. Furthermore, China has responded with up to 15% duties on U.S. agrifood goods such as beef, chicken and pork, due to start shortly.
However, there have been several amendments announced since the official commencement date of the tariffs including:
- President Trump has announced a temporary reprieve for Mexico and Canada from the new 25% tariffs. This exemption will last until 2nd April 2025 and only applies to products covered by the USMCA.
- Any Mexican and Canadian imports that were imported during the three days wherein the tariffs were in effect are not exempt and will be subject to the tariffs upon arrival in the US.
- President Trump has also announced a 250% tariff on Canadian dairy imports and a reciprocal tariff on Canadian lumber imports, both scheduled for implementation either this or next week.
- There is discussion around potential long-term or permanent exemptions from tariffs for certain agricultural imports from Mexico and Canada such as fertiliser.
- A 30-day exemption has been announced that protects the automotive industry from 25% tariffs on all cross-border shipments from Canada and Mexico.
- The aluminium and steel import tariffs will take effect 12 March 2025.
- Additionally, President Trump has announced plans to apply reciprocal tariffs on any nation that imposes tariffs on US goods, with these assessments commencing at the beginning of April.
It is anticipated that once these tariffs take effect, they will result in price shifts and changes in product availability and could spur a shift in international manufacturing with a pivot towards alternative manufacturing hubs located in trading nations that are less impacted by protectionist measures such as Vietnam, India and more.
FOLLOW US FOR THE LATEST NEWS!
Sorry, the comment form is closed at this time.