On Wednesday, April 2, US President Donald Trump imposed new significantly major tariffs across the globe, he even dubbed that day “Liberation Day.”
Surprisingly, however, three countries have been spared from the massive tariffs wave, at least for now. It is still unknown why these three countries specifically have not been included in the list, but we’re here to break it down.
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The curious case of the tariffs
Trump executed a 25% tariff on all foreign automobiles, and some countries took harsher blows than others.
For instance, Trump went after Thailand for charging “higher prices like 60%,” in addition to India (which charged 70%), Vietnam (75%), and “others even higher than that,” whereas the US used to only charge 2.5%.
There is also a baseline tariff for other goods
Trump set a baseline 10% tariff which will be applied globally across all countries starting from April 9, 12.01 am ET.
There are exceptions to the rule, though. Those who are compliant with the USMCA free trade agreement between Mexico, Canada, and the United States will be spared.
But what about non-compliant countries?
Countries non-compliant with the USMCA free trade agreement will be charged a 25% rate. UK imports, on the other hand, will have a 10% tariff, while EU goods will have a 20% one.
Treasury Secretary Scott Bessent has issued a warning to the involved countries against “rash” retaliation, but why the upcoming three countries have been spared from these tariffs has definitely raised eyebrows.
The president spared Canada (for now)
The president hasn’t spared Canada from the tariffs out of goodwill; he had already imposed 25% tariffs on goods non-compliant with the USMCA free trade agreement coming from there.
Also, Canada hasn’t taken these blows silently; Ontario Premier Doug Ford warned that he’ll inflict “as much pain as possible to the American people” if matters escalate further, so much so that he installed billboards affirming that.
And similarly, Mexico
Mexico’s situation is similar to that of Canada, where a 25% tariff was imposed on its goods.
Mexican President Claudia Sheinbaum has previously announced that her country will respond with retaliatory tariffs on the US. However, she announced today, April 3, that Mexico will “announce a comprehensive program, not a tit-for-tat on tariffs.”
And the surprise third country was Russia
Despite Trump not being currently pleased with Russian President, Vladimir Putin, they are still in touch.
As to the mystery behind sparing Putin’s country from tariffs, Treasury Secretary Scott Bessent clarified to Fox News that the US doesn’t trade with Russia to begin with due to the Russian-Ukrainian war.
Other countries that weren’t on the list
Cuba, Belarus, and North Korea didn’t make it on the list as well, and that doesn’t mean that they got away with it, on the contrary, harsher measures are in the cooking for these countries, too.
