On Thursday, President Trump said he will issue an exemption on tariffs of. most U.S. imports from Mexico that are covered under a 2020 trade agreement, delaying levies imposed on the nation earlier this week. Trump announced after speaking with Mexican President Claudia Sheinbaum that Mexico will be exempt from tariffs on goods covered by the U.S.-Mexico-Canada Agreement (USMCA) trade treaty until April 2; the tariffs would take effect when it expires.

Mr. Trump shared the news in a social media post on Truth Social after his call with President Sheinbaum, referring to the United States-Mexico-Canada Agreement: “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. This Agreement is until April 2nd. I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl. Thank you to President Sheinbaum for your hard work and cooperation!”

The USMCA allows goods to move between the three countries tariff-free if they follow certain rules. Those rules require that a product be made entirely in North America or be substantially transformed in North America, if it is made of components from other countries. For products like automobiles, 75% of their content must be from North America. The USMCA covers the vast majority of imports from Mexico, and in a press conference Thursday, President Sheinbaum reiterated that nearly all of Mexico’s trade with the U.S. is covered under the USMCA agreement.

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