Trump announces month-long suspension of Mexico tariffs

US President Donald Trump has said Mexico will not be required to pay tariffs on goods that come under the trade pact between the two countries and Canada until 2 April.

Trump has not confirmed if the suspension also applies to Canada, but Commerce Secretary Howard Lutnick said earlier on Thursday he was hopeful the reprieve would apply to both of Americas neighbours.

The latest move is the second climbdown in two days from Trump on his tariffs.

On Wednesday he said he would temporarily spare carmakers from 25% import taxes just a day after they came into effect.

Lutnick told CNBC the temporary exemption of tariffs for car part imports from Canada and Mexico could be extended to all products that are part of the United States-Mexico-Canada Agreement (USMCA).

The USMCA was established during Trumps first term of office. Its 34 chapters covered cars, dairy and lumber amongst other things, and the agreement included a review every six years.

On Thursday, Trump wrote on Truth Social that Mexico would be exempt until 2 April.

After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement, he said.

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