Trump: I have agreed that Mexico will not be required to pay tariffs on anything in USMCA

Trump is confirming what Lutnick earlier said was ‘likely’.

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!

There is still some confusion about the implementation of this that will need to be cleared up but I expect that it’s a total reprieve. On April 2, the US goes to its reciprocal tariff system but there isn’t much in the USMCA that’s subject to that.

As for Canada, I expect that’s the next telephone call.

This article was written by Adam Button at www.forexlive.com.