President Donald Trump took a price break from certain products from Mexico and Canada, removing the main parts of a policy emitted two days earlier.
One month’s exemption will raise prices for all Canadian and Mexican products in accordance with the agreement of the United States-Mexico-Canada, or USMCA, a free trade agreement.
While Trump only said about social networks publications that Mexico would be spared prices, the White House officials told ABC News that the stay would apply to Mexico and Canada.
Officials said that around 50% of Mexico imports comply with USMCA and that 38% of imports from Canada comply with USMCA. Motor vehicles and automobile accessories are a good part of the trade in accordance with the USMCA, added the managers.
The relaxation of prices on certain Mexican products came after a conversation between Trump and Mexican President Claudia Sheinbaum, said Trump in an article on Social truth.
“Our relationship was very good, and we work hard, together, at the border, both to prevent illegal foreigners from entering the United States and, in the same way, to stop fentanyl. Thank you to President Sheinbaum for your hard work and your cooperation!” Said Trump.
A few minutes later, Sheinbaum compared the same way.
“We had an excellent call and respectful in which we agreed that our work and our collaboration have given unprecedented results, in the context of respect for our sovereigns,” said Sheinbaum in an article on X.
Trump made this announcement shortly after the Secretary of Commerce, Howard Lunick, said that a month’s delay in Mexico and Canada would likely apply to all products in accordance with USMCA.
The trucks line up near the Mexican border before crossing the border in Otay Commercial Crossing in Tijuana, Baja California State, Mexico, March 4, 2025.
Guillermo Arias / AFP via Getty Images
Trump negotiated the USMCA during his first mandate, by signing the agreement with Canada and Mexico in 2018.
“This is part of President Trump’s agreement with Canada and Mexico [is] Likely to obtain an exemption from these prices, “Lunick told CNBC on Thursday morning.
Despite efforts to relieve certain prices, the actions fell on Thursday while the benefits of politics continued to raid on the markets.
The industrial average of Dow Jones fell by around 400 points, 0.9%, while S& P 500 fell 1.5%. The Nasdaq, heavy in technology, has flowed 2%.
The sale has erased some of the market gains delivered a day earlier after President Donald Trump has given us car manufacturers one month of suspended prices. The tasks on a multitude of other goods have however remained in place.
The United States earlier this week slapped 25% prices on Mexico and Canada goods, as well as 10% prices on imports from China. The new series of tasks on Chinese products has doubled a first set of prices placed on China last month.
The delay of one month in the car rates sparked a rally for the actions of American car manufacturers on Wednesday, but the largest companies in the sector refused Thursday at the start of negotiations.
Traders work on the New York Stock Exchange Prosecutor’s Office (NYSE) on March 05, 2025 in New York.
Spencer Platt / Getty images
Ford’s shares fell 1.5%, while General Motors fell by almost 3%. STELLANTIS – The parent company of Chrysler and Jeep – saw its stock market price drop by 2%.
Tesla, the electric car manufacturer led by Elon Musk, dropped 4.5% on Thursday.
The prices should make a challenge for American car manufacturers, many of which depend on a supply chain closely linked to Mexico and Canada.
The American Automotive Policy Council, or AAPC, a commercial group which represents Ford, General Motors and Stellantis, praised the price exemption of one month.
“American automakers Ford, GM and Stellantis applaud President Trump for having recognized that vehicles and parts that meet the high requirements of USMCA American content should be exempt from these prices,” said AAPC president Matt Blunt in a press release.
It is a story in development. Please check the updates.
Michelle Stoddart and Molly Nagle contributed to this report.
