Donald Trump's reciprocal tariffs: Why Canada and Mexico are missing from the list? | Explained
Donald Trump’s new reciprocal tariffs exclude Canada and Mexico while imposing high levies on several other nations.
FollowUS President Donald Trump on Wednesday announced a sweeping set of reciprocal tariffs, imposing varying rates on several nations in a bid to curb what he described as the "looting" of America by foreign economies. However, Canada and Mexico were notably absent from the latest tariff list, as were Russia and North Korea. While this exclusion may appear to be a relief, both Canada and Mexico still face pre-existing trade levies imposed earlier by the Trump administration.
The newly announced tariffs introduce a baseline 10% charge on imports, going up to as high as 46% for certain countries. India will face a 26% tariff, the European Union 20%, Japan 24%, South Korea 25%, Taiwan 32%, and Thailand 36%. Vietnam, one of the hardest-hit nations, will be subject to a 46% tariff. China, which maintains the largest trade surplus with the US, will see a 34% tariff—a figure that climbs to 54% when combined with earlier levies imposed in February over the US fentanyl crisis.
Trump made the announcement from the White House, declaring, "Our country has been looted, pillaged, raped, plundered" by other nations. His administration argues that these tariffs are necessary to protect American industries and workers.
Why Canada and Mexico Were Excluded
Although Canada and Mexico were not subject to the new April 2 reciprocal tariffs, they continue to face existing duties. Trump had earlier imposed a 25% tariff on imports from both countries, along with a 10% tariff on Canadian energy and potash. These fentanyl-related tariffs remain in place, which is why the two nations were not included in the latest round of reciprocal tariffs.
Additionally, goods entering the US under the US-Mexico-Canada Agreement (USMCA) will continue to be exempted, according to news agency AFP. However, if Canada and Mexico negotiate new deals on levies, they may still have to contend with Trump's baseline 10% tariff rate.
Despite the exclusion, Canadian Prime Minister Mark Carney voiced his opposition to the overall tariff policy, stating, "We are going to fight these tariffs with counter-measures. We are going to protect our workers." Meanwhile, Mexican President Claudia Sheinbaum is expected to outline Mexico’s official response in a press conference on Thursday.
Russia and North Korea Also Exempt
Russia and North Korea were also absent from Trump's tariff list. According to the White House, these nations—as well as Cuba and Belarus—are already under extensive US sanctions, which "preclude any meaningful trade."
Trump’s Campaign Promise in Action
Trump's latest trade move aligns with his 2024 election campaign promise to impose a 60% tariff on Chinese goods. While the current tariff on China stands at 34% (or 54% with fentanyl-related duties), this escalation signals a continued tough stance on trade with Beijing.
As Trump’s tariff policy takes effect, global markets and diplomatic relations are expected to react sharply, with potential retaliatory measures from affected nations. Observers are closely watching how these trade barriers will impact the US economy and its global standing in the coming months.
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