One-month tariff relief likely to be extended to all USMCA-compliant goods

US Commerce Secretary Howard Lutnick said he is hopeful the president will announcement that extension on Thursday.

US Commerce Secretary Howard Lutnick said Thursday in a television interview that President Donald Trump will likely suspend 25 per cent tariffs on Canada and Mexico for most products and services for a month, broadening an exemption that was granted on Wednesday only to autos.

In an interview on CNBC, Lutnick said the one-month delay in the import taxes will likely cover all USMCA-compliant goods and services, referring to the trade agreement Trump negotiated in his last term that replaced NAFTA.

Lutnick estimated that more than half of what the US imports from those two countries would be eligible for the exemption.

Lutnick said the reprieve will only last until April 2, when the Trump administration plans to impose reciprocal tariffs, in which the US will impose import taxes on other countries to match the ones they have on US exports.

Yet he also said that if the two countries don't make enough progress limiting the shipment of fentanyl into the United States, the 25 per cent tariffs could be re-applied in a month as well.

Hopefully we will announce this today USMCA-compliant goods will not have a tariff for the next month until April 2nd, Lutnick said.

Lutnick's comments come as Trump's on-again, off-again tariffs threats have roiled financial markets, lowered consumer confidence, and enveloped many businesses in an uncertain atmosphere that could delay hiring and investment.

US markets bounced of their lows for the day shortly after Lutnick spoke.

Lutnick added that Trump is expected to speak with Mexico's president Claudia Sheinbaum later Thursday and could make an announcement afterwards.