A couple of days after implementing the 25 per cent tariff on all aluminium and steel imports, US President Donald Trump exempted neighbouring nations Canada and Mexico from tariffs, but only for commodities included in the trade agreement of 2019 — the United States-Mexico-Canada Agreement (USMCA). However, the tariff payments made between March 4 and March 6 — when importers had already paid for goods in transit — will not be refunded, according to White House officials.
Image source: https://mr.usembassy.gov/
In a fresh twist, mere hours after threatening to end Canada's exemption, the US has now imposed a staggering 50 per cent tariff just as Canada attempted to negotiate by leveraging energy supply tariffs from them to the US.
Official statements regarding the exemption are 'colourful'. Does that mean 'profane'?
The language used around these tariff decisions has raised eyebrows. Earlier, in a Truth Social post, Trump stated:
"After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay tariffs on anything that falls under the USMCA Agreement. This Agreement is until April 2."
He added that this decision was made "out of respect" for Sheinbaum, highlighting the ongoing collaboration between the US and Mexico in tackling undocumented migration and controlling the flow of fentanyl into the US.
In stark contrast, Canadian Prime Minister Justin Trudeau was less optimistic about trade relations. He revealed he had a 'colourful' conversation about tariffs during a phone call with Trump, a discussion reportedly laced with profanities, according to US and Canadian media outlets.
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