Tariffs on Canada and Mexico Take Effect, Then Get a Second Reprieve Two Days Later

Twenty-five percent tariffs on imports from Canada and Mexico took effect March 4, 2025, after a one-month delay. Two days later, on March 6, President Donald Trump issued a second monthlong reprieve, Transport Topics reported.

"After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement," Trump said on social media. "This Agreement is until April 2nd."

Earlier on March 6, Commerce Secretary Howard Lutnick had said a temporary exemption for automakers could be extended to all products under the United States-Mexico-Canada Agreement, according to TT. The Canadian tariffs included a 10% carve-out for energy imports, and a separate 25% tariff on steel and aluminum imports from all countries was set to begin March 12.

Trucking warns of direct impact

The American Trucking Associations said truckers would feel the duties first. "The 100,000 full-time hardworking truckers hauling 85% of the surface trade in goods with Mexico and 67% of the goods traded with Canada will bear a direct and disproportionate impact," ATA President Chris Spear said on March 4. "Not only will tariffs reduce cross-border freight, but they will also increase operational costs. The price tag of a new truck could rise by up to $35,000, amounting to a $2 billion annual tax and putting new equipment out of reach for small carriers."

Spear urged all parties "to come to the table once again to swiftly reach a new agreement."

A spokesperson for the Owner-Operator Independent Drivers Association told FreightWaves that the tariffs "have the potential to inhibit the recovery from a freight recession that has been acutely felt by America's small-business truckers," while adding it was too early to predict specific effects.

Shippers pulled freight forward

According to the U.S. Trade Representative, goods trade with Canada totaled an estimated $762.1 billion in 2024 and trade with Mexico $839.9 billion, TT reported.

Jenna Slagle, senior data analyst at Project44, said shippers moved goods early to get ahead of the duties. "From Canada, there was a 10% uptick of imports last week in order to mitigate tariff impacts if they [did] go into place on March 4 as planned," she said shortly before the tariffs began. Slagle advised carriers to prepare for shifts in freight volume, route changes, border delays and higher operating costs.

Russell Zuppo of Uber Freight said most shippers were not abandoning plans to move production to Mexico, though some were "reassessing the immediacy of those plans."

What it means for drivers and fleets

Cross-border carriers entered March facing on-again, off-again rules. Freight pulled ahead of March 4 could leave a lull afterward, and the April 2 date set up another decision point. Drivers on border lanes were told to expect possible delays, while fleets planning truck purchases had ATA's warning of up to $35,000 more per new truck to weigh if tariffs on equipment and parts persisted.