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In a significant development for the markets, U.S. President Donald Trump has signed a tariff amendment impacting trade with Mexico and Canada, effective March 6th. This new measure exempts goods aligned with the United States-Mexico-Canada Agreement (USMCA) from tariffs until April 2nd, signaling a strategic move to encourage compliance and promote bilateral trade. Trump has reaffirmed that existing tariffs on steel and aluminum will remain unchanged, reinforcing a tough stance on imported metals.
Previously, on February 1st, the President enacted a 25% tariff on imports from the neighboring nations, which had raised concerns among industry stakeholders. Following this, a 30-day deferral of tariff hikes was announced on February 3rd to allow ongoing negotiations. The latest tariff measures officially took effect on March 4th, potentially reshaping trading dynamics in North America.
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