Crucial exemption allows majority of Canadian and Mexican goods to be shipped to US without tariffs

Trump Canada Mexico Trade Explainer - (Copyright 2025 The Associated Press. All rights reserved)

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.

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.