Mexico and Canada secured an exemption from the new 10% U.S. levy on imports, following a Supreme Court decision that struck down several Trump‑era tariffs. The ruling clarified that goods traded under the United States‑Mexico‑Canada Agreement (USMCA) will not be subject to the levy, offering temporary relief to two of Washington’s closest trade partners.
The exemption ensures that critical sectors such as automotive parts, oil, and manufacturing inputs can continue flowing tariff‑free across North America. Until the court’s intervention, products outside USMCA protections faced steep tariffs—up to 35% for Canadian goods and 25% for Mexican exports.
While the decision reduces immediate pressure, analysts warn that risks to the USMCA framework persist. President Donald Trump has signaled openness to revisiting trade rules, raising concerns that new tariffs or renegotiations could emerge. Such moves would inject uncertainty into supply chains and potentially undermine the stability of North America’s integrated markets.
Business leaders in Mexico and Canada welcomed the exemption but urged vigilance. They emphasized that while the ruling protects current trade flows, the broader challenge lies in safeguarding the USMCA itself. Any disruption could affect industries ranging from agriculture to energy, with ripple effects across jobs and investment.
For now, the exemption represents a reprieve, but the looming question is whether the USMCA can withstand political pressures and remain the cornerstone of North American trade.
Source: Boston Globe
