White House: Goods from Mexico and Canada that comply with the USMCA continue to be exempt

More, this form an unnamed White House official:

• A 10% baseline tariff will be imposed on all countries, with higher reciprocal tariffs for the worst offenders.

• Countries will be charged half of the calculated reciprocal tariff rate, which considers both tariffs and non-tariff barriers.

• Products covered by Section 232 tariffs (autos, steel, aluminum, copper, lumber) will be excluded.

• Trump plans to declare a national emergency due to national and economic security concerns related to U.S. trade deficits.

• Tariffs on Canada and Mexico related to fentanyl and migration will remain in place as long as those issues persist.

• An executive order will specify reciprocal tariffs by country.

• The tariff system includes a baseline floor for all countries to prevent circumvention.

• The baseline tariff rate will take effect on April 5 at 12:01 a.m.

• Reciprocal tariffs will take effect on April 9 at 12:01 a.m.

• It will likely take a long time for other countries to remove non-tariff trade barriers.

• Trump also plans sector-specific tariffs for semiconductors, pharmaceuticals, and possibly critical minerals, which will not be part of the new tariff regime.

• Around 60 countries are on the “worst offender” list.

• The tariffs are being implemented under the International Emergency Economic Powers Act (IEEPA).

• Trump will respond to retaliation from other countries to ensure the emergency order remains effective.

• Goods from Mexico and Canada that comply with the USMCA will continue to be exempt.

• USMCA-compliant goods will also remain exempt from tariffs tied to fentanyl-related issues.

• Post–World War II institutions are considered “no longer fit for our times and our economic situation.”

This article was written by Eamonn Sheridan at www.forexlive.com.