The Daily Fuckup

Donald Trump on March 6 narrowed the new tariff regime he had put in place two days earlier for Canada and Mexico. The White House said goods that qualify for preferential treatment under the United States-Mexico-Canada Agreement would not face the additional duty, while certain non-USMCA energy imports from Canada and potash imports from Canada and Mexico would be hit at 10% instead of 25%. The changes were set to apply to goods entered for consumption starting at 12:01 a.m. Eastern on March 7. ([whitehouse.gov](https://www.whitehouse.gov/presidential-actions/2025/03/amendment-to-duties-to-address-the-flow-of-illicit-drugs-across-our-southern-border/))

The March 6 order did not erase the tariffs altogether. It left the additional 25% duty in place for goods that do not satisfy USMCA rules of origin, according to the White House fact sheet. The administration cast the move as an effort to reduce disruption to the automotive supply chain, which moves parts and components across North American borders. ([whitehouse.gov](https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-adjusts-tariffs-on-canada-and-mexico-to-minimize-disruption-to-the-automotive-industry/))

That makes the policy less a full pause than a reset with carveouts. The White House said the March 4 tariffs had been issued under the International Emergency Economic Powers Act, and the March 6 action adjusted how those duties would apply to the two countries' trade with the United States. ([whitehouse.gov](https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-adjusts-tariffs-on-canada-and-mexico-to-minimize-disruption-to-the-automotive-industry/))

For exporters, importers and automakers, the practical problem is still the same: the rules changed again, and the exact tariff rate now depends on whether a shipment qualifies under USMCA and what category it falls into. The result is a narrower shock than the original March 4 order, but not a clean end to the dispute. ([whitehouse.gov](https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-adjusts-tariffs-on-canada-and-mexico-to-minimize-disruption-to-the-automotive-industry/))