The widening of the US economic policy could be delayed following potentially influential developments. Tariffs involving Mexico and Canada could be postponed due to decision-making hinged on the terms of the USMCA agreement. Although there is currently no explicit confirmation, President Trump is thought to be in the process of reconsidering the execution of these duties as part of the United State-Mexico-Canada Agreement (USMCA).
The USMCA, a proposal by Trump seeking to replace the North American Free Trade Agreement (NAFTA), was introduced in 2018. The agreement, which brought important changes to trade between the US, Mexico, and Canada, combined a series of rules guiding tariff implementations. A much-debated topic, the agreement is still under consideration by lawmakers within all three countries.
In circumstances such as these wherein government policy could significantly impact international trade relations, thorough discussions are to be expected. According to official information, the postponement of tariffs hugely depends on the final version of USMCA and its subsequent ratification, which is yet to take place. Depending on the modifications made to the agreement, tariff implementations may either be stalled or expedited.
It is pertinent to note that the potential postponement of tariffs does not necessarily signify definite cancellation. Economists, government officials, and traders around the globe are holding their breath, anticipating the final decision that could influence the global economic climate and the future of the USMCA.
Last modified: March 9, 2025
