CHICAGO, March 6, 2025 — President Trump has carved out more short-term exemptions to the 25% tariff he levied Tuesday on imports from Mexico and Canada, announcing to the surprise of the marketplace that he will exclude all incoming products covered by a 2020 treaty until April 2.
That earlier pact, known as the U.S.-Mexico-Canada Agreement (USMCA), covers a large swath of foods and agricultural products, as well as manufacturing components like car parts. But there’s disagreement about how sweeping the exemptions will be.
The White House has indicated that 50% of Mexican imports and 30% of incoming products from Canada are covered by the USMCA. It reportedly cited Mexican avocados as one of the products that is not under that umbrella.
But Mexican President Claudia Scheinbaum took a broader view. In a social-media tweet, she contended that the USMCA covers virtually every Mexican product that’s imported into the States.
The postponement of duties will likely be warmly received by the food-away-from-home industry, a major buyer of foods and beverages from the U.S. neighbors.
The National Restaurant Association has projected that the 25% tariffs on Mexican and Canada goods, along with 10% duties on Chinese imports, will cost the foodservice U.S. industry $12 billion. or roughly 30% of a typical restaurant’s profits.
The association has asked Trump to exempt food and beverages coming into the country from Mexico and Canada because of the tariffs’ expected financial impact on restaurants.
Trump announced the temporary suspension of the tariffs on Mexican goods via his Truth Social social-media platform midday Thursday, after meeting with President Sheinbaum.
“I did this as an accommodation, and out of respect for, President Sheinbaum,” the U.S. chief executive wrote. “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."
A few hours later, the White House announced that Canadian goods covered under the USMCA would also be exempted until April 2.
Trump contends the tariffs are needed as leverage to force Mexico and Canada to be more aggressive in policing their borders with the U.S. He has demanded that both nations do more to stem the inflow of black-market fentanyl and undocumented aliens into the U.S.
Less than 48 hours after the Mexican and Canadian tariffs were imposed, Trump agreed to suspend until April 1 the duties on cars imported from those nations.
The start of April is looming as a key date in the development of the Administration’s global trade policies. A major internal report on the use of tariffs is expected to be submitted to the White House on April 1. Many economic analysts expect the president to impose tariffs on other nations because of the report.
The speculation is that the additional duties will be aimed at discouraging the import of more foodstuffs, including agricultural items produced in Europe. The president has aired his belief that those protective measures will help American farmers by boosting domestic demand for their output.
The turn of events fostered considerable volatility on the equity markets. At closing, the Dow Jones Industrial Average was down 482 points, or .99%.
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As Managing Editor for IFMA The Food Away from Home Association, Romeo is responsible for generating the group's news and feature content. He brings more than 40 years of experience in covering restaurants to the position.