US temporarily exempts tariffs on several Mexican products

Dairy, automobiles, pharmaceuticals exemption follows talks with Mexican president

US President Donald Trump announced Thursday that Mexico will not pay tariffs on goods covered under the US-Mexico-Canada Agreement (USMCA) until April 2. The decision came after discussions with Mexican President Claudia Sheinbaum, whom Trump praised for cooperation on border security and combating fentanyl trafficking. “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,” Trump wrote on Truth Social. The “accommodation” was a gesture of respect for Sheinbaum, he said, emphasizing their collaborative efforts to address illegal immigration and drug trafficking. The exemption applies to key sectors like dairy, automobiles and pharmaceuticals. It follows the US imposition of a 25% tariff on Mexican imports that took effect March 4. Mexico previously considered retaliatory tariffs on US goods. USMCA is the replacement to the North American Free Trade Agreement (NAFTA) in 2020, that governs trade between the US, Mexico and Canada.