{"id":894,"date":"2025-08-05T21:46:27","date_gmt":"2025-08-05T21:46:27","guid":{"rendered":"http:\/\/www.agencywebdesigners.com\/?p=894"},"modified":"2025-08-07T14:21:20","modified_gmt":"2025-08-07T14:21:20","slug":"crucial-exemption-allows-majority-of-canadian-and-mexican-goods-to-be-shipped-to-us-without-tariffs","status":"publish","type":"post","link":"http:\/\/www.agencywebdesigners.com\/index.php\/2025\/08\/05\/crucial-exemption-allows-majority-of-canadian-and-mexican-goods-to-be-shipped-to-us-without-tariffs\/","title":{"rendered":"Crucial exemption allows majority of Canadian and Mexican goods to be shipped to US without tariffs"},"content":{"rendered":"<p><strong>By ROB GILLIES<\/strong><\/p>\n<p>TORONTO (AP) \u2014 U.S. President <a href=\"https:\/\/apnews.com\/hub\/donald-trump\">Donald Trump<\/a> raised the <a href=\"https:\/\/apnews.com\/article\/tariffs-trump-economy-imports-inflation-62d52742c0bb0a5b8304755c6ee9af4d\">tariffs on Canadian goods<\/a> to 35% last week, but a key exemption for Canada and Mexico shields the vast majority of goods from the punishing duties.<\/p>\n<aside class=\"related left\">\n<h2 class=\"widget-title\" data-curated-ids=\"\" data-relation-type=\"automatic-primary-section\">Related Articles<\/h2>\n<ul>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/08\/06\/penske-truck-immigration-raid\/\" title=\"Federal agents hid in back of rental truck at start of raid outside LA Home Depot\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tFederal agents hid in back of rental truck at start of raid outside LA Home Depot\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/08\/06\/kennedy-mrna-vaccines-fact-check\/\" title=\"FACT FOCUS: RFK Jr.\u2019s reasons for cutting mRNA vaccine not supported by evidence\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tFACT FOCUS: RFK Jr.\u2019s reasons for cutting mRNA vaccine not supported by evidence\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/08\/06\/national-weather-service-hirings\/\" title=\"After deep DOGE cuts, National Weather Service gets OK to fill up to 450 jobs\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tAfter deep DOGE cuts, National Weather Service gets OK to fill up to 450 jobs\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/08\/06\/trump-computer-chip-tariffs\/\" title=\"Trump plans 100% tariff on computer chips, unless companies build in U.S.\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tTrump plans 100% tariff on computer chips, unless companies build in U.S.\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/08\/06\/voting-rights-act-under-threat\/\" title=\"Protections of the Voting Rights Act are under threat as the law marks its 60th anniversary\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tProtections of the Voting Rights Act are under threat as the law marks its 60th anniversary\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<\/ul>\n<\/aside>\n<p>Goods that comply with the 2020 United States-Mexico-Canada Agreement trade pact that Trump negotiated during his first term are excluded from the tariffs.<\/p>\n<p>Here\u2019s a look at Trump\u2019s tariffs on the two countries and their exemptions:<\/p>\n<h4>Most Canadian exports reaching the U.S duty free<\/h4>\n<p>Canada\u2019s central bank says 100% of energy exports and 95% of other exports are USMCA compliant. The Royal Bank estimated that almost 90% of Canadian exports appear to have accessed the U.S. market duty free in April.<\/p>\n<p>Canadian <a href=\"https:\/\/apnews.com\/video\/canadian-pm-carney-hopes-for-a-constructive-deal-over-trumps-tariff-increase-6f12152d5917413b8ed6cff562949e2f\">Prime Minister Mark Carney<\/a> said the commitment of the United States to the core of USMCA, reaffirmed again last week, means the U.S. average tariff rate on Canadian goods remains one of its lowest, and over 85% of Canada-U.S. trade continues to be tariff free.<\/p>\n<p>\u201cCanada is better off than any of the trading partners right now because the Americans appear to be relying as a default on USMCA,\u201d said Flavio Volpe, president of the Automotive Parts Manufacturers\u2019 Association. \u201cThat gives them the tough tariff headline but also allows them the access to the stuff they need from us. Because of that we\u2019re in a relative better position.\u201d<\/p>\n<p>Canadian and Mexican companies can claim preferential treatment under the USMCA based on where the products are made.<\/p>\n<p>\u201cThe headline news is 35% tariffs but it\u2019s somewhat targeted,\u201d said John Manley, Canada\u2019s former industry minister, finance minister, foreign affairs minister and deputy prime minister.<\/p>\n<p>Manley said Canada is doing okay despite the economic uncertainty.<\/p>\n<p>\u201cThere is a lot of resilience I\u2019d say. The Canadian economy has done relatively well, better than most of us expected, and remember that there is no tariffs on any of our energy exports,\u201d he said.<\/p>\n<h4>25% tariffs on Mexican goods target a small slice of trade<\/h4>\n<p>Trump said last week he would enter into a 90-day negotiating period with Mexico, also one of America\u2019s largest trading partners. The current <a href=\"https:\/\/apnews.com\/article\/trump-tariffs-mexico-canada-b19e004dddb579c373b247037e04424b\">25% tariff rates<\/a> are staying in place, down from the 30% he had threatened earlier.<\/p>\n<p>But that 25% only applies to the fraction of Mexico\u2019s trade with the U.S. that isn\u2019t covered by the USMCA. Shortly after speaking with Trump on Thursday, <a href=\"https:\/\/apnews.com\/hub\/claudia-sheinbaum\">President Claudia Sheinbaum<\/a> said that within the \u201cnew commercial world order,\u201d Mexico was still the best positioned nation because of the free trade agreement.<\/p>\n<p>\u201cWhat\u2019s within (USMCA) has no tariff, with the exception of what we already know: autos, steel and aluminum; and what is outside the treaty has 25%,\u201d Sheinbaum said.<\/p>\n<p>But Economy Secretary Marcelo Ebrard pointed out that under the USMCA no tariffs were paid on more than 84% of Mexico\u2019s trade with the United States.<\/p>\n<p>Most imports from Canada and Mexico are still protected by the USMCA, but the deal is up for review next year. U.S. Commerce Secretary Howard Lutnick said last month: \u201cI think the president is absolutely going to renegotiate USMCA.\u201d<\/p>\n<p>Preserving the free trade pact will be critical for Canada and Mexico.<\/p>\n<p>\u201cIt would be an incredible disruption to lose it especially if you lost it to the levels of tariffs Trump is imposing, 30%, 25% or even 20%. You can absorb a single digit tariff level across the board but you can\u2019t adjust that kind of increase,\u201d Manley said.<\/p>\n<p>More than 75% of Canada\u2019s exports go to the U.S. while more than 80% of Mexico\u2019s exports go there.<\/p>\n<p>Manley said that depending on how the trade war plays out the risk to the USMCA is very high. \u201cUncertainty in business is the enemy of decision making,\u201d he said.<\/p>\n<h4>Charging for access<\/h4>\n<p>Carney said in a series of recent agreements with other countries that America is, in effect, charging for access to its economy.<\/p>\n<p>Manley said the investment thesis for Canada is pretty straightforward as Canada is rich in natural resources, has a skilled labor force, is open to immigration and has unfettered access to the U.S. market, the largest economy in the world.<\/p>\n<p>\u201cIf that latter point is no longer the case, we\u2019ve still got all the others, but we\u2019ve got to really redevelop the investment thesis for attracting investment to Canada,\u201d Manley said.<\/p>\n<p>Trump has some sector specific tariffs, known as 232 tariffs, that are having an impact. There is a 50% tariff on steel and aluminum imports and a 25% tariff on auto imports, though there is a carve-out for Canadian and Mexican made cars.<\/p>\n<p>\u201cDespite our advantages, certain major Canadian industries are being severely impacted by U.S. trade actions. These strategic sectors include autos, steel, aluminum, copper, pharmaceuticals, semiconductors, and of course, softwood lumber,\u201d Carney said Tuesday. \u201cIt is clear we cannot count or fully rely on what has been our most valued trading relationship for our prosperity.\u201d<\/p>\n<p><em>Associated Press writer Fabiola S\u00e1nchez in Mexico City contributed to this report.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By ROB GILLIES TORONTO (AP) \u2014 U.S. President Donald Trump raised the tariffs on Canadian goods to 35% last week, but a key exemption for Canada and Mexico shields the vast majority of goods from the punishing duties. Related Articles Federal agents hid in back of rental truck at start of raid outside LA Home&hellip;<\/p>\n","protected":false},"author":1,"featured_media":275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[],"_links":{"self":[{"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/posts\/894"}],"collection":[{"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/comments?post=894"}],"version-history":[{"count":1,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/posts\/894\/revisions"}],"predecessor-version":[{"id":895,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/posts\/894\/revisions\/895"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/media\/275"}],"wp:attachment":[{"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/media?parent=894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/categories?post=894"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/tags?post=894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}