US Commerce Secretary Lutnick: Trump is leaning towards USMCA market excluded from tariffs.

US Commerce Secretary Lutnick: Trump is leaning towards USMCA market excluded from tariffs.

In a surprising turn of events, US Commerce Secretary Howard Lutnick indicated on Tuesday that President Donald Trump may be leaning towards exempting certain markets from tariffs, specifically those involved in the US-Mexico-Canada Agreement (USMCA) [1]. This announcement comes after a series of tense negotiations and market volatility resulting from the imposition of tariffs on Mexico and Canada.

Lutnick's statements, made during an interview on Fox Business, caused a wave of relief among investors and businesses affected by the tariffs. In a subsequent interview with Bloomberg, Lutnick clarified that Trump is considering a plan that could keep tariffs at 25% for Mexico and Canada but include certain product exemptions [1]. The potential exclusion of automobiles from these tariffs was specifically mentioned.

The USMCA, which replaced the North American Free Trade Agreement (NAFTA), is a significant trade agreement for the United States, Mexico, and Canada. The potential exclusion of tariffs for this market would alleviate concerns of retaliation and help stabilize the affected industries.

However, it is essential to note that these developments are still in the early stages, and the final decision rests with President Trump. The international trade landscape remains fluid, and businesses and investors should continue to monitor developments closely.

References:
[1] Dale, D. (2025, March 5). Trump is leaning towards USMCA market excluded from tariffs, commerce secretary says. CNN. https://us.cnn.com/2025/03/05/economy/tariffs-lutnick-trump/index.html