President Donald Trump on Thursday announced a one -month tariff delay in several products from Mexico.
Temporary exceptions will raise tariffs for all Mexico goods in accordance with the United States-Mexican-Canadi, or USMCA agreement, free trade agreement.
The announcement occurred after a conversation between Trump and Mexican President Claudia Sheinbaum, said Trump.
“Our relationship is very good, and we work hard, together, at the border, both in terms of stopping illegal aliens entering the United States and, also, stop Fentanyl. Thank you to President Sheinbaum for your hard work and cooperation!” Trump said in a post on Social truth.
A few minutes later, Sheinbaum replied in the same way.
“We have a very good and respectful call where we agree that our work and collaboration have produced unprecedented results, within the framework of respect for our sovereignty,” Sheinbaum said in a post at a post X.
Trump made the announcement immediately after the Trade Secretary Howard Lutnick said that the one -month tariff delay in Mexico and Canada would likely apply to all products in accordance with USMCA.
The queue truck near the Mexican-As border before crossing the border at the Otay Commercial Crossing in Tijuana, the State of Baja California, Mexico, March 4, 2025.
Guillermo Arias/AFP via Getty Images
Trump negotiated USMCA during his first term of office, signing an agreement with Canada and Mexico in 2018.
“What is part of President Trump’s agreement with Canada and Mexico [is] It is likely to get an exception from this tariff, “Lutnick told CNBC on Thursday morning.
Apart from efforts to ease several tariffs, shares fell on Thursday because the impact of the policy continues to roar the market.
Dow Jones Industrial Average fell by around 400 points, or 0.9%, while s& P 500 dropped 1.5%. Nasdaq heavy technology sank 2%.
The sale action removed several market advantages delivered the day before after President Donald Trump gave us the suspension of a one -month car from the tariff. However, the duty of a number of other items remains.
The US earlier this week slapped 25% of goods tariffs from Mexico and Canada, as well as 10% of import tariffs from China. New Rounds for Chinese goods duplicated the initial tariff set placed in China last month.
The one -month delay in car rates triggered a general meeting for US car maker shares on Wednesday, but the largest company in this sector was rejected in early trading on Thursday.
Traders work on the New York Stock Exchange (NYSE) floor on March 5, 2025, in New York City.
Spencer platt/getty image
Ford shares fell 1.5%, while General Motors dropped by almost 3%. Stellantis – Chrysler and Jeep’s parent companies – see the stock price down 2%.
Tesla, an electric car maker led by Elon Musk, fell 4.5% on Thursday.
The tariff is expected to cause challenges for US car makers, many of which depend on supply chains that are closely related to Mexico and Canada.
American Automotive Policy Council, or AAPC, a trading group representing Ford, General Motors and Stellantis, praised the exception of one month tariff.
“Ford’s American car makers, GM and Stellantis praised President Trump for acknowledging that vehicles and parts that meet the requirements of USMCA’s high US and regional content must be released from this tariff,” AAPC President Matt Blunt told ABC News in a statement.
This is a developing story. Please check again for updates.