US President Donald Trump signed executive orders halting the recently imposed tariffs on imports from Canada and Mexico covered under the United States-Mexico-Canada Agreement (USMCA) yesterday, on 6 March 2025.

The USMCA allows goods to move tariff-free between the three countries (US, Canada, Mexico) if they are made entirely in North America or significantly transformed there using components from other countries.

Entering into force on 1 July 2020, the USMCA – which substituted the North America Free Trade Agreement (NAFTA) – is a mutually beneficial win for North American workers, farmers, ranchers, and businesses. The Agreement creates more balanced, reciprocal trade supporting high-paying jobs for Americans and growing the North American economy.

The pause, outlined in the executive orders, aims to reduce disruptions to the US automotive industry. President Trump stated that tariffs on qualifying products are paused until 2 April 2025, though this date is not specified in the orders.

This development follows Trump’s decision on 5 March 2025 to exempt automakers from his 25% tariffs on Canada and Mexico for one month if they follow existing free trade rules, following discussions with the three largest US automakers: Stellantis, Ford, and General Motors.

Trump’s tariffs pose significant challenges for automakers, who rely on a complex production process that involves manufacturing vehicles across all three North American countries and transporting parts across their borders multiple times.

Earlier, on 30 January 2025, Trump signed an executive order implementing significant tariffs on key trading partners. The order imposed a 25% tariff on imports from Canada and Mexico and a 10% tariff on goods from China. The new tariffs entered into force on 4 March 2025.