Trump pauses tariffs again, but not for all products: these are the goods from Mexico and Canada that are exempt

President Donald Trump’s back-and-forth approach to tariffs on goods from Mexico and Canada took another turn this week. After imposing 25% tariffs on most imports from both countries on Tuesday, Trump abruptly paused the levies on Thursday, giving businesses a brief reprieve. But if you’re assuming that means all products are in the clear, that’s not the case.

Some products are still caught in the crossfire, and the suspension only lasts until April 2 — when Trump’s threatened to replace the current system with a sweeping set of reciprocal tariffs. Let’s take a brief check on the details.

No refunds for tariffs already paid

If you paid the 25% tariff on shipments that crossed the border between Tuesday and Thursday, don’t expect to get that money back. The suspension isn’t retroactive, and auto industry officials confirmed the White House made clear there will be no refunds for vehicles or parts shipped during those days.

The suspension officially took effect at 12:01 a.m. ET on Friday, but it’s only temporary. Whether it lasts beyond April 2 depends on whether Trump’s satisfied with Mexico and Canada’s efforts to curb fentanyl trafficking — the issue he’s tying directly to these tariffs.

Why did fentanyl trigger Mexico-Canada tariffs?

Unlike past trade fights, these tariffs weren’t triggered by dumping or subsidies. Trump declared a national emergency over fentanyl on January 20, blaming China for supplying the chemicals and Mexico and Canada for allowing the drugs to flow into the US. That fentanyl crackdown is why China also faces its own 20% tariff.

As you may expect, China isn’t taking it quietly. Beijing warned the US can’t demand cooperation on fentanyl while turning the screws on trade at the same time.

Some goods are exempt — but not all

Most goods from Mexico and Canada are temporarily exempt from the 25% tariff — but not everything.

Energy products from Canada are only partially exempt. Some fall outside the US-Mexico-Canada Agreement (USMCA) Trump brokered in his first term, and those products still face a separate 10% tariff.

There’s good news for US farmers, though. Imports of potash, a fertilizer heavily used by American growers, are fully exempt — at least until April 2.

After heavy lobbying from Ford, General Motors, and Stellantis, Trump agreed to fully exempt automotive goods from Mexico and Canada. That’s a relief for US carmakers, who depend on supply chains that crisscross North America.

The broader suspension doesn’t touch steel and aluminum, two sectors that are still set to face 25% tariffs starting March 12. That’s especially bad news for Canada, which is the biggest foreign supplier of aluminum to the US.

Is Trump already the flip-flop president?

Wall Street isn’t loving the uncertainty. The S&P 500 dropped 1.8% on Thursday, and it’s down nearly 7% since mid-February. It’s not just the tariffs themselves — it’s the constant policy reversals that make it nearly impossible for businesses to plan ahead. And Trump isn’t even two months into his new term as president!

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