Exemptions on Tariffs for Goods from Mexico and Canada

SOURCE www.nbcnews.com
President Trump issued exemptions on tariffs for goods from Mexico and Canada compliant with the USMCA until April 2. Some Canadian energy products will still be subject to a 10% tariff, while all other goods, including computers from Mexico, will face a 25% tariff. The move aims to pressure Canada and Mexico to stop the flow of fentanyl into the U.S.

Key Points

  • Exemptions for USMCA-compliant goods until April 2
  • Tariffs on non-compliant goods to address Chinese goods flow
  • Pressure on Canada and Mexico regarding fentanyl issue

Pros

  • Exemptions provided for goods compliant with the USMCA
  • Aims to address concerns of Chinese goods being shipped into Mexico and then sent to the U.S. tariff-free
  • Pressure on Canada and Mexico to stop the flow of fentanyl into the U.S.

Cons

  • Some Canadian energy products will still be subject to a 10% tariff
  • All other goods, including computers from Mexico, will face a 25% tariff
  • Added costs from tariffs could drive prices higher on various products