Washington/Mexico City: Former US President Donald Trump has postponed all tariffs (import duties) imposed on Mexico till April 2, 2023. The decision comes after negotiations between the two countries under the USMCA agreement, in which Mexico has promised to open its markets to US products. Trump had earlier threatened to impose tariffs ranging from 5% to 25% on Mexico, which increased tensions in bilateral trade.
Key points:
1. Why were the tariffs imposed?
The Trump administration accused Mexico of harming the US auto industry and failing to stop illegal immigration.
In 2019, it was threatened that tariffs would be increased if Mexico did not stop immigration at the US border.
2. Basis of exemption:
Mexico agreed to increase US access to dairy and agricultural products under the USMCA.
Promise to give priority to US companies in the Mexican energy market.
3. Timeline:
Tariffs waived until April 2, 2023, after which both countries will review.
Reactions:
Mexican President Andres Manuel Lopez Obrador: "This decision will strengthen bilateral relations. We have ensured fair trade with the US."
US Commerce Department: "Mexico has shown cooperation in complying with the provisions of the USMCA."
Critics: Democrats called Trump's policy "unstable and anti-business."
Experts' opinion:
Daniel Economics (trade analyst): "Trump used tariffs to fulfill his election promises, but this would not have been possible without USMCA."
Mexican trade body: "The waiver will provide relief to our exporters, but such shocks need to be avoided in the future."
What's next?
Both countries will review the progress of USMCA in April 2023.
US Trade Representative Katherine Tai has warned that "Mexico must continue to comply with the standards."