Just two days after imposing sweeping tariffs on goods from Mexico and Canada, former U.S. President Donald Trump announced exemptions.
Leaving businesses and investors struggling to keep up with his unpredictable trade policies.
This is as long as they meet the rules of the U.S.-Mexico-Canada Agreement (USMCA).
However, the sudden shift has sent shockwaves through the stock market, with companies warning that fluctuating trade policies could raise prices and disrupt business operations.
“It’s impossible to plan for the future when the rules keep changing,” said Chuck Dardas, president of auto parts manufacturer AlphaUSA.
“We just need some stability.”
Tariffs, trade, and tough decisions
Despite the exemptions, uncertainty looms.
The relief is temporary, as Trump has scheduled another round of retaliatory tariffs for April 2.
Some Canadian energy products will still face a 10% tariff, and computers from Mexico remain subject to a 25% tax.
During his first term, Trump championed the USMCA as a major trade victory.
Allowing goods to move tariff-free among the three countries if they met strict North American manufacturing standards.
However, his latest tariff measures have left companies questioning the stability of the agreement.
Fentanyl issues
However, data from U.S. Customs and Border Protection suggests that less than 1% of fentanyl seized at the border originates from Canada.
Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau both highlighted significant drops in fentanyl smuggling.
Information Trump reportedly had not seen before making his decision.
Retailers such as Target and Best Buy have warned that continued tariff uncertainty could lead to higher prices on everyday goods, including food, electronics, and cars.
Automakers, who initially feared that the tariffs could increase vehicle prices by up to $10,000, welcomed the exemptions but remain wary of what comes next.
“There will always be some short-term disruptions,” Trump told reporters.
“But in the long run, America will be happy.”
For now, businesses are left waiting-wondering if stability is on the horizon or if another policy shift is just around the corner.
