Update: Mexico And Canada Tariffs Paused Indefinitely

On Thursday March 6, 2025, President Trump announced a pause on newly instituted tariffs on Mexico which went into effect earlier this week. The President said, via Truth Social: 

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!

President Trump held a phone call with the Prime Minister of Canada earlier that day, which did not appear to result in similar concessions for Canada.

However, later that day, President Trump signed two Executive Actions titled “Amendment To Duties To Address The Flow Of Illicit Drugs Across Our Southern Border” and “Amendment To Duties To Address The Flow Of Illicit Drugs Across Our Northern Border.” The stated purpose of these Actions is to “minimize disruption to the United States automotive industry and automotive workers.”

The effect of these Actions is as follows: Canadian and Mexican originating duty free goods, as defined by general note 11 of the United States Mexico Canada Agreement, that enter on or after 12:01 a.m. EST on March 7, 2025 are exempt from the additional tariff imposed by Executive Order 14193. There is no indication how long this exemption will last. It could last indefinitely.

As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions.  If you seek strategic counsel and insight into how these changes could affect your operations, we invite you to contact us to schedule a consultation.