Trump Tightens Grip on Canada, Grants Mexico Breathing Room in Trade Talks

 

As the clock ticks toward a sweeping tariff deadline, former U.S. President Donald Trump has signaled a hardening stance on Canada while offering Mexico a temporary reprieve. In a series of social media posts on Thursday, Trump declared that a trade deal with Canada would be “very hard” to achieve following Prime Minister Mark Carney’s announcement that Canada intends to recognize a Palestinian state.

Trump had previously threatened to impose a 35% tariff on Canadian goods not compliant with the Canada-U.S.-Mexico Agreement (CUSMA) if a deal wasn’t reached by Friday. While the White House confirmed that CUSMA-compliant goods would be exempt, the looming tariffs have cast uncertainty over North American trade.

In contrast, Mexico received a 90-day extension to negotiate a new trade agreement. Trump cited the “complexities” of the U.S.-Mexico border and praised his “very successful” conversation with Mexican President Claudia Sheinbaum. During this period, existing tariffs—including 25% on fentanyl-related goods and autos, and 50% on steel, aluminum, and copper—will remain in place. Mexico also agreed to eliminate its non-tariff trade barriers, though specifics were not disclosed.

Legal challenges to Trump’s tariff strategy are mounting. On Thursday, federal appellate judges questioned the administration’s use of the International Economic Emergency Powers Act (IEEPA) to justify sweeping tariffs, a move critics argue exceeds presidential authority.

While Trump continues to tout tariffs as a tool to make “America GREAT & RICH Again,” the mixed signals and legal scrutiny suggest a turbulent road ahead for U.S. trade policy.