Former U.S. President Donald Trump is back in the spotlight with his proposed reciprocal tariff plan aimed at balancing international trade deals. notably, Canada and Mexico are not included in the list of countries facing new tariffs, indicating a more calculated approach to North American trade.
Why Canada and Mexico Are Exempt
The exclusion of Canada and Mexico might come as a surprise given past trade tensions. However, this could reflect Trump’s broader acceptance of the United States-Mexico-Canada Agreement (USMCA), the NAFTA replacement deal his administration negotiated. By exempting these key trade partners, the intention is likely to maintain economic stability and benefit the manufacturing and agricultural sectors across the continent.
Targeting Unequal Trade Relationships
Instead of Canada and Mexico, Trump's focus appears to be on countries he claims have taken unfair advantage through one-sided trade deals. China, for instance, has frequently been a target of his trade rhetoric. By promoting reciprocal tariff policies, Trump aims to pressure nations into renegotiating terms more favorable to American industries.
This strategy reflects Trump’s broader economic platform of 'America First,' where prioritizing U.S. jobs and production takes precedence over traditional free-trade approaches.
