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Canada, Mexico Not Subject to New Global Rates

Mexico and Canada have been exempted from President Donald Trump’s new 10% global tariff baseline. Goods compliant with the USMCA trade agreement will largely remain tariff-free, except for auto exports and steel and aluminum, which fall under separate policies. While Trump previously imposed 25% tariffs on Mexico and Canada over migration and fentanyl concerns, he later allowed exemptions for USMCA-compliant goods. Analysts believe the exemptions helped Mexico and Canada avoid harsher trade measures. Canadian leaders, however, indicated they would respond with countermeasures to protect their economy.