U.S. President Donald Trump’s decision to defer the 25% general tariff on imports of products originating in Mexico and Canada has implications for the permanence of the USMCA.
Trump deferred the entry into force of this tariff from March 4 to April 2.
If applied, this tariff rate would imply the disappearance of the USMCA, which currently regulates tariff-free trade in practically all products traded between the three countries.
USMCA
So far, Trump has announced a wide range of measures to increase tariffs on U.S. imports, from general tariffs, to product-specific tariffs on steel, aluminum, automobiles, and possibly copper, among others.
Of all those measures. The U.S. has only put in place an additional 10% tariff on imports of all products originating in China and taken tariff action on imports through parcel delivery services.
Trump said Wednesday he will delay the 25% tariff on Mexico and Canada for another month. “April 2 … for everything,” he commented, when asked about the planned tariffs on his two neighboring countries.
“I’m not going to stop tariffs. Millions of people have died because of fentanyl crossing the border,” Trump added during a cabinet meeting at the White House.
Marcelo Ebrard
The Secretary of Economy, Marcelo Ebrard, informed that he will meet this Thursday with Jamieson Greer, White House Trade Representative, and with Howard Lutnick, US Secretary of Commerce, this Friday.
These meetings will take place following the announcement made this Wednesday by U.S. President Donald Trump to postpone the entry into force of the 25% general tariff on imports from Mexico and Canada from March 4 to April 2.
“The objective of the referred meetings is to continue the dialogue and trade negotiations between Mexico and the United States,” said the Ministry of Economy.
WTO
The new tariffs imposed by Trump turn out to be more harmful to Mexico than the absence of the USMCA. In addition, these tariffs violate the rules of the World Trade Organization (WTO), as highlighted by the US Office of the National Council of the Maquiladora and Export Manufacturing Industry (Index USA).
In a statement, Index USA pointed out that the increase in tariffs by the United States on products from Mexico and Canada violates Article 2.4.1 of the USMCA. This article prohibits increasing tariffs on goods originating in member countries. In addition, the measure also goes against WTO rules, as it imposes higher tariffs than those previously established by the United States in that organization.