Trump’s Partial Tariff Exemptions Leave Majority of Canada-Mexico Duties in Place

Trump temporarily exempts certain USMCA goods from 25% tariffs until April 2, but most tariffs on Mexico and Canada remain.

President Trump signed an order granting a temporary exemption from the 25% tariffs on certain goods from Mexico and Canada, applying exclusively to products shipped under the U.S.-Mexico-Canada Agreement (USMCA), such as televisions, air conditioners, and select agricultural goods. Effective Friday March 7^th, 2025, the exemption will remain in place until April 2, when Trump has warned of imposing a global system of reciprocal tariffs on all U.S. trading partners.

Despite this temporary relief, most tariffs on Mexico and Canada remain in effect, with 50% of U.S. imports from Mexico and 62% from Canada still subject to duties, according to White House officials. These percentages may shift as businesses adjust their trade strategies to leverage the exemptions.

The limited scope of the exemptions became more evident Friday when Trump warned of potential new tariffs on Canadian lumber and dairy products, including a 250% tax on dairy to counter what he described as Canada’s restrictive trade policies.

Canadian Prime Minister Justin Trudeau acknowledged the ongoing trade tensions, telling reporters that a trade war between the two allies was likely to persist. “Our goal remains to get these tariffs, all tariffs removed,” he said, describing a recent phone call with Trump as “colorful.” Meanwhile, Mexican President Claudia Sheinbaum described her conversation with Trump as “excellent and respectful,” noting that both countries agreed to collaborate on curbing fentanyl trafficking into the U.S. and restricting gun smuggling into Mexico.

The economic impact of the tariffs is already evident. U.S. imports surged 34% in January as businesses rushed to avoid potential duties, pushing the U.S. trade deficit past $130 billion, according to Commerce Department data.

Any health system can set up a 30-minute SRS training session on how leading health systems assess their exposure to tariffs and other risks, and the steps they take to mitigate risks proactively. Simply email SRS Support (support@supplyrisk.com) to schedule a time.

Executives face challenges estimating their exposure to increased costs from tariffs for their health system. There is no one-size-fits-all answer. The following SRS reports can be tailored to the items you buy to assess tariff exposure for your health system:

• “Products by Country (Tariff Risk)” – choose any country to see which items you buy are manufactured there (in the Prevent dashboard).
• “Products Subject to Section 301 China Tariffs” – downloads current section 301 tariffs on healthcare item made in China (in the Prevent dashboard).
• “Products Sites and Risks” – lists manufacturing location for all items you buy from the supplier (in the Prevent dashboard after you drill down on a supplier).
• “Supplier Geopolitical Summary” – summarizes exposure for all countries (in the Respond dashboard).

If you have not yet tailored SRS for the items you buy, it’s easy to do so with an SRS subscription.

For more information, see:

BBC, Trump expands exemptions from Canada and Mexico tariffs, March 7

CNN, Trump threatens new tariffs on Canada, including 250% tax on dairy, March 7

Supply Risk Solutions, U.S. Tariffs on Canada and Mexico Take Effect, March 4

AP, US tariffs take effect and Mexico, Canada and China retaliate with their own tariffs on the US, March 4

Yahoo, Borderlands Mexico: Mapping supply chains key to surviving tariff wars, experts say, March 2

CNBC, Trump tariffs will hit over $200 billion in U.S.-Canada-Mexico cross-border rail trade, February 28

Supply Risk Solutions, U.S. Unveils New Tariff Plans, February 28

BBC, Trump says US will impose additional 10% tariff on China, February 27

CNBC, How Trump’s tariffs on Mexico and Canada will sweep across the U.S., state by state, February 25

Supply Risk Solutions, Trump Confirms Canada and Mexico Tariffs Will Take Effect on March 4, February 25

Supply Risk Solutions, Trump Proposes 25% Tariffs on Cars, Chips, Pharma Products, February 20

MedPage Today, Trump Plans to Impose Tariffs on Pharmaceuticals. Here’s What to Know., February 20

Supply Risk Solutions, China Counters U.S. Tariffs with Targeted Tariffs, Export Controls, and Investigations, February 4

BBC, US coal and gas among targets of China’s retaliatory tariffs, February 4

Reuters, Trump pauses tariffs on Mexico and Canada, but not China, February 3

Supply Risk Solutions, Trump Delays Tariffs on Mexico and Canada, February 3

Supply Risk Solutions, U.S. to Impose Tariffs on Key Trading Partners Feb. 1, February 1

Supply Risk Solutions, Trump’s Tariff Policies Spark Global Uncertainty, January 27

Supply Risk Solutions, Trump Proposes 25% Tariffs on Canada and Mexico Starting February 1, January 21

Supply Risk Solutions, Tariff Planning Requires Product Transparency, January 13

Supply Risk Solutions, U.S. Tariff Plans Bring Urgency to Knowing Product Manufacturing Locations, December 2

Supply Risk Solutions, Tariffs Push Manufacturers to Rethink Supply Chain Strategies, November 15

Supply Risk Solutions, Tariffs Spur Urgency to Understand Product Manufacturing Locations, November 11

Supply Risk Solutions, List the Products You Buy That Are Subject to China Import Tariffs, October 28

White & Case, United States Finalizes Section 301 Tariff Increases on Imports from China, September 17