US Commerce Secretary Howard Lutnick indicated on Thursday that the one-month exemption from the newly imposed 25 per cent tariffs on goods from Mexico and Canada could be extended to all products that comply with the US-Mexico-Canada Agreement (USMCA). This follows President Donald Trump’s earlier decision to exempt automotive goods from the tariffs.
Speaking to CNBC, Lutnick expressed optimism that Trump would make the announcement soon. “It’s likely that it will cover all USMCA-compliant goods and services,” he said.
Compliance as the key factor
Lutnick emphasised that businesses operating under the USMCA framework would benefit from this reprieve. “If you lived under Donald Trump’s US-Mexico-Canada agreement, you will get a reprieve from these tariffs now. If you chose to go outside of that, you did so at your own risk,” he added.
According to Lutnick, more than 50 per cent of goods imported from Canada and Mexico—America’s two largest trading partners—are compliant with the USMCA.
Canadian Prime Minister Justin Trudeau described Lutnick’s remarks as “promising” but remained cautious. “That aligns with conversations we’ve had with administration officials, but I will wait for an official agreement,” Trudeau said. He also noted that, as long as tariffs remain, Canada’s response will continue.
The trade decision, expected soon, could ease tensions between the US and its neighbors while reinforcing the importance of USMCA compliance.
(With agency inputs)