Under the revised structure, a 25 per cent tariff will apply to goods that do not meet US-Mexico-Canada Agreement (USMCA) rules of origin. A lower 10 per cent tariff will be imposed on energy products and potash imports from Canada and Mexico that fall outside the USMCA preference. Goods qualifying for USMCA benefits will continue to enjoy zero tariffs.
Explaining the rationale behind the move, a White House Fact Sheet stated, “While the situations at our Northern and Southern borders continue to require appropriate action from the Governments of Canada and Mexico, our American automotive industry, which provides American jobs, should not suffer significant disruption just because of the structure of its supply chain.”
President Trump defended the use of tariffs as a strategic tool, reinforcing his administration’s commitment to national security. The Fact Sheet further noted, “President Trump will never stop standing up for the safety of the American people and is using tariffs as a tool to take decisive actions that put Americans’ safety and our national security first.”
Following the imposition of tariffs under the International Emergency Economic Powers Act (IEEPA) on March 4, Canada and Mexico have pledged to intensify efforts against illegal immigration and fentanyl trafficking. The White House highlighted that 29 Mexican drug cartel leaders have been extradited to the US, including one accused of murdering a DEA agent.
Emphasising the broader economic impact, the Fact Sheet added, “America’s manufacturers, including our automakers, have strengthened our economy and expanded our workforce. Today’s actions promote a level playing field for American manufacturers, bringing supply chains closer to home, especially for our auto industry, which has been hit hard by offshoring.”
Trump’s move reinforces his America First Trade Policy, using economic leverage to push for stricter border controls while protecting US manufacturers from trade disruptions.
ALCHEMPro News Desk (RKS)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
