Update (1130ET): President Trump has confirmed what Howard Lutnick hinted at earlier. In a Truth Social post, Trump noted that Mexico ()not Canada) will be exampt from tariffs on USMCA-compliant goods until April 2nd…
After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement.
This Agreement is until April 2nd.
I did this as an accommodation, and out of respect for, President Sheinbaum.
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.
Thank you to President Sheinbaum for your hard work and cooperation!
Sheinbaum replied, thanking the US president:
The peso surged up to two-wekek highs…
What happens on April 3rd?
As a reminder, we are at a critical level on the Trump Tariff 1.0 analog…
Will it be different this time?
* * *
US equity markets are rebounding off yesterday’s lows following remarks by US Commerce Secretary Howard Lutnick on CNBC that raise the potential fdor exemptions for any goods that are USMCA-compliant:
Trump will decide Thursday on the scope of a one-month exemption on 25% tariffs imposed this month on the US’s two largest trading partners, Lutnick said in an interview with CNBC.
“I think it’s likely it will cover all USMCA-compliant goods and services,” he said.
This comes on the day when the trade balance data shows a record trade deficit overall (as imports surged to front-run tariffs)…
Lutnick said he and Trump would be speaking with their Mexican counterparts later Thursday and that both Mexico and Canada “offered us an enormous amount of work on fentanyl.”
The knee-jerk reaction was positive – erasing around half of this morning’s selloff…
The question is – will these be temporary exemptions… or will Trump change his mind again?
Tyler Durden
Thu, 03/06/2025 – 11:35
