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We want to provide you with the latest update on the Administration’s IEEPA tariff policy as discussions continue regarding trade with Canada and Mexico.
President Trump announced on social media that goods from Mexico will not be subject to tariffs on products that fall under the U.S.-Mexico-Canada Agreement (USMCA) until April 2. This decision follows a productive conversation between President Trump and Mexican President Claudia Sheinbaum, in which both leaders reaffirmed their commitment to working together on key issues, including border security and efforts to curb fentanyl trafficking. President Sheinbaum also issued a social media post where she referred to an “excellent and respectful” call with President Trump.
As of 1:00 pm today, the White House had not confirmed an overall exemption from the IEEPA tariffs for Canada.
MEMA welcomes this temporary relief and the recognition of the complexity of the North American manufacturing ecosystem. We continue to await further specific details from the White House, which are expected to come in the form of an update to the prior Executive Order.
Our goal remains securing tariff relief for all vehicle components, ensuring that trade policies support a strong and competitive vehicle supplier industry. MEMA is actively engaged in discussions with policymakers and will continue to advocate for policies that provide long-term stability for suppliers and manufacturers. We will provide additional updates as soon as more details emerge.
March 5, 2025 at 4:26:59 PM CST
The Administration has announced a pause on the 25% IEEPA tariffs on automobile products from Canada and Mexico that comply with U.S.-Mexico-Canada Agreement (USMCA) requirements. This decision provides additional time for discussions on trade policy and supply chain impacts.
Conversations held today indicate positive results that USMCA-compliant parts are included, but we are awaiting official confirmation from the Administration.
MEMA appreciates the White House’s recognition of the complexity of the North American auto manufacturing ecosystem and the opportunity to continue working together toward solutions that align with the Administration’s manufacturing and economic growth objectives.
While this pause is a positive step, MEMA’s goal remains achieving relief for all vehicle components, ensuring that trade policies support a strong and competitive vehicle supplier industry. We look forward to continued dialogue with the Administration, policymakers, and industry stakeholders to advocate for comprehensive solutions that promote supply chain stability and investment confidence.
As discussions progress, we will monitor developments closely and provide updates as more details emerge. If you have any questions or insights to share regarding the impact of these policies on your business, please don’t hesitate to reach out.
You may view past member and media statements here mema.org/tariffs.
On March 2, 2025, the White House released two documents which state that the Administration will allow de minimis treatment for the items covered by the IEEPA tariffs on Mexico and Canada until such time as the U.S. Department of Commerce can establish a system to collect the tariff revenue due on those shipments. In the original Executive Orders on the tariffs for Canada and Mexico, the Administration had revoked all de minimis treatment for those covered articles and items.The new March 2nd documents are available here:
Mexico – Amendment to Duties to Address the Situation at our Southern Border – The White House
Canada – Amendment to Duties to Address the Flow of Illicit Drugs across our Northern Border – The White House
Retaliatory Tariffs:
Canada had unveiled its response to the U.S. tariffs in early February. The Canadian government had indicated that it would impose 25% tariffs on $155 billion worth of U.S. exports into Canada. The first phase of this initiative would cover $30 billion in goods. The list of goods on the retaliation list is available at this link: List of products from the United States subject to 25 per cent tariffs effective February 4, 2025 – Canada.ca
The second phase would consist of tariffs on $125 billion worth of U.S. items. This second list was not released. The Canadian government had indicated that the second list would be subject to a 21-day comment period to allow interested parties to provide feedback.
There have been no further updates provided by the government of Canada since the original agreement on February 3, 2025 to suspend the tariffs until March 4. Please note that it is possible that changes could be made to the retaliation documents and lists issued previously.
The government of Mexico did not unveil the specifics of its retaliation plan or a list of goods in early February and no documents have been released to date.
MEMA is monitoring the situation closely and will continue to provide members with timely updates.
President & CEO
MEMA, The Vehicle Suppliers Association | mema.org
blong@mema.org
O: 919.406.8813 | M: 203.887.2833
