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US president Donald Trump has suspended tariffs on imports from Canada and Mexico that are covered by the US-Mexico-Canada Agreement (USMCA) trade deal.

The White House announced adjustments to the previously announced 25% tariffs on Canadian and Mexican goods on 6 March. In a statement, it said that the changes aimed to minimise disruption to the automotive supply chain – however, the adjustments will also impact food and beverage imports among other goods.

The tariffs now only apply to goods that do not satisfy the USMCA rules of origin, with tariffs suspended until 2 April on goods from Mexico and Canada that claim and qualify for USMCA preference.

According to a report from news outlet CNBC, a White House official confirmed that around 50% of Mexican imports and 38% of Canadian imports are covered by the USMCA trade agreement.

The White House also announced a lower 10% tariff on potash – an agricultural fertiliser – imported from Canada and Mexico that falls outside the UMSCA preference.

Dominic LeBlanc, Canada’s minister of finance and intergovernmental affairs, confirmed that Canada will now suspend its planned second wave of retaliatory tariffs on $125 billion of US products.

In a statement shared on the social media platform X, he confirmed the development while adding that Canada will “continue to work for the removal of all tariffs”.

The 25% tariffs on imports from Canada and Mexico, as well as an additional 10% on imports from China, were brought into effect early last week (4 March). According to president Trump, the intention of the tariffs is prevent drug trafficking and illegal migration into the US.