TORONTO (AP) — Canada is dropping retaliatory tariffs to match U.S. tariff exemptions for goods covered under the United ...

Canada is dropping retaliatory tariffs to match U.S. tariff exemptions for goods covered under the United ...

That means the status quo will continue with goods from Mexico taxed at 25%. But some goods continue to be protected from tariffs under the USMCA trade deal Trump signed under his first term.

The imbalance with Mexico has grown in the aftermath of the USMCA, as it was only $63.3 billion in 2016, the year before Trump started his first term in office.

Already, Trump announced another 90-day extension for previously negotiated tariff levels on Mexican imports, many of which are exempt thanks to the pre-existing USMCA trade agreement.