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Trump freezes duties against Mexico, but trade war with Canada continues

US president suspends duties on Mexico until 2 April, but tension continues with Canada, where response tariffs remain in place

US President Donald Trump has decided to suspend duties on Mexico until 2 April, giving a partial reprieve to the trade war between the two countries. Trump announced the suspension on Truth Social, explaining that the decision was made after having a conversation with Mexican President Claudia Sheinbaum, as a sign of respect for her cooperation. The suspension affects goods under the US-Mexico-Canada Free Trade Agreement (Usmca), which replaced Nafta, excluding Chinese products that pass through Mexico without tariffs.

In his message, Trump also emphasised the good relationship between the two countries, referring to cooperation on issues such as border control and the fight against fentanyl trafficking. However, the president hinted that the suspension will only last until 2 April, when reciprocal tariffs between the two countries are expected.

Despite improved relations with Mexico, the tension with Canada is far from resolved. The Canadian Prime Minister, Justin Trudeau, has stated that they will not suspend the duties imposed in response to those of the United States. Canada announced a 25% tariff package on US imports worth USD 107 billion, with a first group of products already affected by duties and a second group to come into effect in three weeks. Trudeau reiterated that the US duties will hurt workers and businesses in the US.

Furthermore, Trudeau confirmed that Canada will not back down on its tariffs until those imposed by the US on Canadian products are lifted, describing the situation as a ‘trade war’. Despite the harsh words, the Canadian Prime Minister tried to play down the tension, calling the phone conversation with Trump ‘colourful’ after the Wall Street Journal revealed that there had been heated exchanges between the two.

Trump, on the other hand, continued to make accusations against Trudeau, insinuating that he is using the tariff issue as leverage for his future political ambitions. According to Trump, the Canadian PM is trying to use the trade crisis to relaunch himself politically, despite his low popularity ratings.

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