President Trump’s partial tariff suspension on Canadian and Mexican goods under the USMCA offers a short-term reprieve, but many products remain subject to steep import duties. While auto imports and potash received exemptions, nearly 40% of U.S. imports from these countries do not qualify under USMCA rules and will continue to face 25% tariffs on non-compliant goods and a separate 10% duty on some Canadian energy products.
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The fact remains that both Mexico and Canada are far more dependent on the U.S. than the U.S. is on them. Canada exports 77% of its goods to the U.S., so tariffs on those goods will burn them badly. Only 17% of U.S. goods go to Canada. It's a similar story for Mexico, which exports 87% of its good to the U.S. but accounts for only 16% of U.S. imports. This means Trump has the leverage he needs to get a deal done quickly.
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Meanwhile, tariffs on Chinese imports have doubled to 20%, intensifying tensions between Washington and Beijing. China has vowed to retaliate against U.S. economic pressure, escalating risks of a prolonged trade war. With the White House preparing to introduce a sweeping “reciprocal tariff” strategy on April 2, markets remain rattled, and businesses are hesitant to make long-term investment decisions.

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