Commercial conflict: USA is largely suspended against Mexico for the time being

For the time being, the United States has largely suspended tariffs on goods from Mexico. US President Donald Trump announced on the Truth Social online platform for all imports from Mexico that fell under the North American free trade agreement USMCA should not apply until April 2. Trump wrote that he had phoned Mexico’s President Claudia Sheinbaum. The Republican said that he granted the deletion of “respect and accommodation”.

Trump argued that the relationship with Mexico is good. They are now working hard together to prevent migrants from the illegal border crossing to the United States and stop the smuggling with the chemical drug fentanyl.

Sheinbaum thanked Trump for an “excellent and respectful conversation”. They agree that the cooperation, considering sovereignty, led to good results. “We will continue our collaboration, in particular in migration and security issues, including the memory of the illegal import of fentanyl to the United States and from weapons to Mexico,” wrote the head of state on the news platform X.

The USMCA is the North America free trade agreement that the USA, Mexico and Canada had signed during Trump’s first term. Trump had already granted a one-month postponement for US car manufacturers on Wednesday. The White House announced that the manufacturers for products that come from Mexico or Canada via the North America Free Trade Agreement do not have to pay any penalty taxes.

Back and forth between the neighbors

In the night of Tuesday (local time), tariffs on goods from Canada and Mexico came into force that are imported into the USA. Trump had justified the penalty taxes of 25 percent by the fact that the two countries did not do enough against cross -border drug trafficking.

Canada had reacted with the same height. Mexico also had the prospect of countermeasures, but initially left the exact details open. The United States, on the other hand, reserved to respond to the extension of its own tariffs. However, there should now be no further escalation with Mexico.

It is questionable whether the United States could also suspend the punitive tariffs on Canadian goods for the time being. Despite positive signals from Washington, Canada’s Prime Minister Justin Trudeau does not see the Trump government before a quick end to the trade conflict. Trudeau said in Ottawa that the customs dispute would continue “for the foreseeable future”.

At the beginning of February, a North American trade war was initially averted at short notice. Trump was only a few hours before the threatened punitive tariffs were originally supposed to use goods from Canada and Mexico, especially for border security. To do this, he pushed the trade restrictions on for 30 days – but after the deadline ended seriously with the tariffs.

Other trading fights continue

Trump regularly uses customs threats as a negotiation tactic to force concessions in other areas. That was already in his first term (2017 to 2021). And since taking office in January, he has long since not only started commercial information with Canada and Mexico. He also took imports from China with new tariffs – initially in the amount of 10 percent, in a second step then doubled to 20 percent. The Europeans also have to expect Trump tariffs. The US President already expressed such a threat several times, but without giving details.