US President Donald Trump’s reciprocal tariff announcements on Wednesday left Canada and Mexico breathing a sigh of relief Wednesday as they were excluded from a new wave of reciprocal tariffs, which were slapped on countries starting with a baseline 10 per cent charge on imports going up to 45 per cent.
US President Donald Trump announced his sweeping reciprocal tariffs on Wednesday from the White House, saying “our country has been looted, pillaged, raped, plundered” by other nations. Follow Trump tariff news LIVE updates
How did Canada, Mexico escape Trump’s tariffs
While Canada and Mexico were exempted from Donald Trump’s April 2 reciprocal tariffs, it doesn’t mean they do not face any action at all. Existing tariffs on Canadian and Mexican goods are already in effect, and new levies on automotive products will take effect Thursday.
Goods from Canada and Mexico were not subject to April 2 reciprocal tariffs because of the above-mentioned Donald Trump’s prior 25 per cent fentanyl-related duties that remain in place on their goods, along with 10 per cent for Canadian energy and potash.
Donald Trump earlier this year imposed 25 per cent tariffs on imports from both countries, with a lower rate on Canadian energy, and they will continue to face these duties.
However, goods entering the world’s biggest economy under the US-Mexico-Canada Agreement will continue to be exempted, according to news agency AFP.
Should Canada and Mexico reach deals on the levies, however, they will still come up against Trump’s latest baseline rate.
“We are going to fight these tariffs with counter-measures. We are going to protect our workers,” Bloomberg quoted Canadian Prime Minister Mark Carney on responding to the news.
Mexican President Claudia Sheinbaum is expected to outline Mexico’s official response in her Thursday press conference.
Russia was also not on Donald Trump’s ‘Liberation Day’ tariff list. Cuba, Belarus, North Korea, and Russia are not subject to Trump’s new “reciprocal tariffs” as they are already facing sanctions which “preclude any meaningful trade,” the White House said.
Trump’s reciprocal tariffs
The US will impose varying reciprocal tariff rates on several nations, starting with the baseline of 10 per cent. Donald Trump imposed 26 per cent reciprocal tariff on India, the European Union faces a 20 per cent tariff, Vietnam will be hit with a 45 per cent rate, Japan 24 per cent, South Korea 25 per cent, Taiwan 32 per cent, and Thailand 36 per cent.
China, which reportedly holds the largest trade surplus with the US at $295 billion for 2024, will face a 34 per cent tariff. Treasury Secretary Scott Bessent noted that this increases to 54% when combined with the 20 per cent tariffs President Trump imposed in February over the US fentanyl crisis.
During his 2024 election campaign, Donald Trump had promised to impose a 60 per cent tariff on Chinese goods.
