Why are Canada and Mexico absent in Trump’s pricing table?

President Donald Trump’s last tariff cycle had two surprising omissions: Mexico and Canada.

Many countries, including China, were slapped Wednesday with large reciprocal rates. After Trump’s announcement, CNBC said that Chinese products could receive a 54% rate when combining new prices (34%) with those which were announced above. The European Union goods will be subject to a new price of 20%.

According to the White House, this does not mean that the neighbors of the United States are Scottish without. Pre -existing 25% tariffs on most Mexican and Canadian products will remain.

Previous prices of USMCA and Trump

Under Trump’s previous order, a price of 25% was applied to all Mexican and Canadian goods who do not comply with the American-Canada-Canada agreement.

The White House said the prices were necessary because the two countries are not enough to stop illegal immigration and smuggling from Fentanyl in the United States from the borders of the North and South. The leaders of the two countries challenged this assertion.

The USMCA trade agreement, which replaced the North American free trade agreement in 2020, maintains the Zero-Tarif Treatment of Alena for most agricultural, textiles, clothing and other goods that comply with the original rules of the trade agreement.

The non -compliant energy and potash of the neighboring nations remain subject to a rate of 10%; The latter was considered the White House bowing to the pressure of the agricultural industry worried about a key ingredient of fertilizers.

Chris Tang, professor and expert UCLA in global management of the supply chain and the impact of regulatory policies, told Business Insider that the choice of the Trump administration to leave Canada and Mexico outside the list of prices on Wednesday could be a symbol that the president recognizes the importance of neighboring nations for the American economy – but it is also probably a negotiation tactic.

“Thus, for example, at the moment, products in accordance with the USMCA are still without a price,” said Tang. “But it’s temporary. Trump said,” Well, it can adapt. “And that still gives it a room for maneuver to negotiate.”

If Trump’s previous order was terminated, a White House spokesperson told Business Insider, all non-USMCA compliant products would be reduced to a 12%rate.

Margaret Kidd, educational teacher for teaching chain and logistics technology at the University of Houston, told Business Insider: “This is not in our interest for the United States to alienate our two closest business partners.”

She added that there were about $ 945 billion in trade between Mexico and the United States in 2024, most of the products exchanged crossing Texas. The prices of the Southern country, she said, have a disproportionate effect on the border states, which are based on the local economy built around international trade.

“Everything is mixed,” said Kidd.

Tang said he hoped that the omission of Canada and Mexico on Wednesday prices could act as a kind of olive branch with the country’s allies to appease trade tensions that have increased since Trump took office.

“Really, our savings are linked,” said Tang. “So, I hope they can really sit and solve it because they are our allies, our neighbors – it’s very important. I hope there is a possibility that these three countries can work together.”