On April 2, President Trump unveiled reciprocal tariffs that predominantly excluded Canada and Mexico. These nations remain subject to existing tariffs while benefiting from exemptions under the USMCA. Both countries are preparing to combat these tariffs effectively. The announcement also included varying rates targeting several countries, with China facing the highest penalties.
On April 2, President Donald Trump announced a series of reciprocal tariffs, expressing frustrations by stating that the United States has been “looted, pillaged, raped, plundered” by other nations. Despite this announcement, both Canada and Mexico were excluded from the new tariffs, which ranged from 10% to 45% on imports from various countries.
The exemption for Canada and Mexico does not imply a lack of tariffs against them. Existing tariffs on goods from both countries remain in effect, including a prior imposition of 25% on fentanyl-related products and a 10% tariff on Canadian energy and potash. Additionally, new automotive levies will take effect soon.
Under the US-Mexico-Canada Agreement (USMCA), goods from Canada and Mexico will continue to be exempt from the latest tariffs, although any negotiations regarding the tariffs may still encounter Trump’s baseline rates. Canadian Prime Minister Mark Carney emphasized the intent to address these tariffs with counter-measures to protect workers.
Mexico’s official response is anticipated to be detailed in an upcoming press conference by President Claudia Sheinbaum. Furthermore, notable absentees from the tariff list included Russia, North Korea, Belarus, and Cuba, as they are currently subject to sanctions prohibiting substantial trade.
The newly imposed reciprocal tariffs vary significantly across countries, starting at a base rate of 10%. Notable examples include a 26% tariff imposed on India, 20% on the European Union, and 45% on Vietnam. Particularly, China will experience a substantial 34% tariff due to its significant trade surplus with the United States. Treasury Secretary Scott Bessent indicated that with pre-existing tariffs, the total tariff on China could reach 54%.
In conclusion, Canada and Mexico have successfully circumvented the latest reciprocal tariffs announced by President Trump, primarily due to existing trade agreements and previously imposed tariffs. However, both nations will continue to face certain levies and are preparing to respond strategically. President Trump has set a precedent for varying tariff rates across several countries, indicating ongoing trade tensions as the administration continues to prioritize protecting American industries and workers.
Original Source: www.hindustantimes.com
