Mexico, Canada Tariffs Paused Until April: DC Watch

Editor’s Note

President Donald J. Trump says a lot of things every day that could affect manufacturers’ strategies. His social media posts, executive orders and comments to the news media, in addition to responses to those developments, can generate a lot of noise and confusion. So, welcome to DC Watch. In this space, we’ll collect the latest comments from politicians that could impact manufacturing and offer a little bit of context. We will continue to write in-depth material about big political issues impacting the manufacturing world – from tax and trade changes to regulatory overhauls. Many of those articles will start out here as Washington publicly debates the merits of various proposals.

12:50 p.m., March 6, 2025

All New Tariffs on Mexico Paused Until April

• Type of news: Post on President Donald Trump's Truth Social account
• The latest: Trump said that after talking to Mexico President Claudia Sheinbaum, he had agreed to pause tariffs on all products covered by the U.S. Mexico Canada Agreement (USMCA) until April 2, calling their relationship "a very good one."  

Impact on manufacturing: In place for less than 48 hours and already relaxed in terms of automotive parts, the longer delay will be welcome for businesses that rely on raw materials and finished goods from Mexico. Tariffs on non-automotive Canadian components remain (for now), and Canadian Prime Minister Justin Trudeau has been far harsher with Trump, rhetorically, than Scheuinbuam had been. Scheinbaum, for example, had delayed enacting reciprocal tariffs on U.S. goods until this weekend, while Canada acted immediately. And, while tariff relief is welcome, the constant uncertainty about the future of U.S.-Mexico-Canada trade will make it harder for businesses to plan for the future.

2:26 p.m., March 5, 2025

Mexico, Canada Auto Parts Tariffs Paused Until April

• Type of news: Comments from the press secretary at a news conference
• The latest: Saying President Donald Trump has talked to automakers and is concerned with the damage that 25% cross-border tariffs could cause for automotive production, the White House is delaying enforcement on tariffs on auto parts until April 2. Other U.S.-Canadian-Mexican tariffs will remain in place.  

Impact on manufacturing: More than any other, the U.S. auto industry relies on cross-border trade with vehicle components crossing all three national boundaries multiple times before ending up in finished vehicles. On Tuesday, ratings firm S&P said prolonged tariffs on automotive parts would be a "Tariff Winter" that could permanently lower demand and raise costs for vehicles in the United States.

5:20 p.m., March 3, 2025

China Tariffs Boosted to 20%

• Type of news: Executive order amendment
• The latest: On March 3, President Donald Trump boosted tariffs on all goods from China to 20%. He did so by amending an early February executive order that had imposed a 10% tariff on all goods from China. The March 3 action struck the 10% tariff rate and replaced it with a 20% tariff rate.  

Impact on manufacturing: Many U.S. manufacturers have supply chains that include products made in China. Those manufacturers were already contending with a 10% tariff. This increase presumably will double the hurt. Additionally, Beijing imposed retaliatory tariffs on certain imports following Trump's first executive order and there is reason to believe more will follow in the wake of Monday's action.

1:25 p.m., Feb. 27, 2025

Mexico, Canada Tariffs Reinstated for March

• Type of news: Post on Trump's Truth Social site
• The latest: A day after saying he would delay implementation on 25% tariffs on all goods from Canada and Mexico until April 2, President Donald Trump said Thursday that the import duties will start next week on March 4. As he did in announcing the tariff plans in late January, Trump said the import fees are meant to slow the flow of illegal drugs into the United States. In February, Canadian and Mexican leaders agreed to do more to stop drug trafficking, delaying tariff implementation by a month. 

Impact on manufacturing: Several manufacturers have voice strong concerns that tariffs on the U.S.'s closest trading partners will raise the costs of goods, spike inflation and make it nearly impossible to plan for future investments. Opposition to Trump's tariff talks were the No. 1 reason given by respondents to a recent IndustryWeek survey in which more than half said Trump's policies have been negative for manufacturing. Major trade groups voiced concerns that tariffs would hammer the auto industry and other manufacturing businesses. The on-again/off-again nature of the constantly changing tariff plans adds more uncertainty to manufacturers, making it harder to plan operations. 

9:08 p.m., Feb. 26, 2025

Mexico, Canada Tariffs Delayed Another Month

• Type of news: Comments to Reporters at Cabinet Meeting
• The latest: Proposed 25% tariffs and goods from Canada and Mexico will not go into effect until at least April 2, President Donald Trump said at a cabinet meeting Wednesday. First proposed in late January, Trump delayed enforcement against both countries for 30 days, meaning tariffs could have gone into effect next week. But, in response to questions from reporters at his first cabinet meeting, Trump said he'd agreed to pause duties for another month. He added that continued pauses on tariff implementation will depend on both U.S. neighbors doing more to slow the flow of fentanyl into the country. 

Impact on manufacturing: The threat of trade duties to our northern and southern neighbors raised significant concerns with manufacturers throughout all three nations. Major trade groups voiced concerns that tariffs would hammer the auto industry and other manufacturing businesses. Extending the pause another month eases those concerns, but long-term planning could suffer if tariff enforcement becomes a month-to-month concern. 

6:15 p.m., Feb. 13, 2025

Trump Wants Reciprocal Tariffs on All Imports

• Type of news: Presidential Memorandum
• The latest: On Thursday President Donald Trump issued a presidential memorandum ordering the development of a plan for reciprocal tariffs on all imported goods. According to the position statement, the Fair and Reciprocal Plan will be based on a review of all non-reciprocal trade relationships with the U.S., including tariff and non-tariffs barriers. The memorandum does not lay out a complete timeline for the plan to roll out; however, it states that within 180 days the Office of Management and Budget must deliver a written assessment to the president of all fiscal impacts of proposed remedies.

Impact on manufacturing: Implementation of the plan could raise costs on a wide range of products, but the impact on manufacturers will depend greatly on how much and what each company imports from trading partners. Presumably, the tariffs could also boost pricing power for domestic producers of certain products.

7:15 a.m., Feb. 11, 2025

Trump Orders 25% Tariffs on Steel, Aluminum Imports in March

• Type of news: Executive order
• The latest: Late Monday, President Donald Trump issued an executive order calling for 25% tariffs on steel and aluminum exported to the United States, starting March 12, 2025. Unlike Trump's 2018 metals tariffs, the new ones do not include provisions for appeals from steel and aluminum users who cannot find domestic suppliers of specialty alloys.

Impact on manufacturing: The vast majority of American manufacturing uses steel and aluminum, so tariffs could drive up costs on automobiles, appliances and dozens of other consumer goods. It could also lead to reciprocal tariffs from trade partners on U.S. goods, lowering demand for U.S.-made products in other parts of the world. Tariffs could also boost pricing power for domestic metals producers. The monthlong timeline before the order takes effect could give trading partners time to negotiate changes to the program. Last week, for example, Trump ordered but then paused blanket tariffs on all Mexican and Canadian goods after the leaders of those two countries agreed to increase border security efforts.

10:40 a.m., Feb. 10, 2025

Trump Proposes 25% Tariffs on Steel, Aluminum Imports

• Type of news: Comments to reporters, an executive order may follow later on Monday
• The latest: Over the weekend, President Donald Trump told reporters that he will order new 25% tariffs on all steel and aluminum exported to the United States, including goods from Mexico and Canada.

Impact on manufacturing: The vast majority of American manufacturing uses steel and aluminum, so tariffs could drive up costs on automobiles, appliances and dozens of other consumer goods. It could also lead to reciprocal tariffs from trade partners on U.S. goods, lowering demand for U.S.-made products in other parts of the world. Tariffs could also boost pricing power for domestic metals producers.