Why These 3 Major Countries Escaped Trump’s Tariffs: Donald Trump has once again shaken the global trade landscape with his latest round of tariffs, which he has dubbed “Liberation Day.” On April 2, 2025, the former president introduced sweeping new trade restrictions, imposing a 25% tariff on all foreign-made automobiles and a baseline 10% tariff on nearly all goods entering the U.S.
However, while most countries felt the sting of these new economic measures, three major nations were conspicuously absent from the list: Canada, Mexico, and Russia. But why?
Canada – Already Feeling the Pressure
Although Canada avoided Trump’s latest round of tariffs, it has not been entirely spared. The country is already facing a 25% tariff on all goods that do not comply with the United States-Mexico-Canada Agreement (USMCA).
In response, Ontario Premier Doug Ford has threatened countermeasures, warning that Canada will “inflict as much pain as possible on the American people.” This comes as the country continues to install billboards protesting the tariffs.
The strained trade relationship between the U.S. and Canada remains tense, with American businesses also feeling the pinch. Will Canada retaliate further? Only time will tell.
Mexico – A Strategic Exclusion
Like Canada, Mexico has already been hit hard by Trump’s earlier tariff policies. The U.S. imposed a 25% tariff on goods from both Mexico and Canada as part of efforts to curb illegal drug trafficking into the U.S.
However, Mexican President Claudia Sheinbaum has opted for a strategic response. While acknowledging the economic blow, she has refrained from an immediate countermeasure, instead planning to announce a “comprehensive program” today (April 3, 2025).
With billions of dollars at stake in cross-border trade, Mexico’s next move could determine the direction of its economic future.
Russia – Sanctioned but Spared?
Despite tensions between Trump and Russian President Vladimir Putin, Russia was not included in the latest tariff list. However, the reason for this exclusion is simple: Russia is already under heavy U.S. sanctions.
Treasury Secretary Scott Bessent explained, “Russia is sanctioned due to its invasion of Ukraine, so we don’t trade with them or Belarus.”
This means that while Russia escaped the latest wave of tariffs, its existing economic restrictions are already far more severe than what many other countries now face.
The Full List of Trump’s New Tariffs
1. 25% Tariff on Foreign-Made Automobiles
Trump has slammed countries like Thailand, India, and Vietnam for their exorbitant tariffs on American vehicles. According to Trump:
- Thailand imposes a 60% tariff on U.S. cars.
- India charges 70%.
- Vietnam demands 75%.
By contrast, the U.S. had previously charged only 2.5% on imported automobiles—a discrepancy that Trump vowed to correct.
2. Baseline 10% Tariff on All Imports (Effective April 9, 2025)
In addition to targeting the auto industry, Trump introduced a baseline 10% tariff on virtually all imported goods. This takes effect at 12:01 AM ET on April 9, 2025 and will hit:
- All non-compliant USMCA countries at 25%.
- UK imports at 10%.
- EU goods at 20%.
3. Additional Tariffs on Non-Compliant Nations
Countries failing to align with U.S. trade policies will face steeper penalties:
- China: 20% tariff on all imports (after an initial 10% hike).
- European Union: 20% tariff on all non-compliant goods.
Treasury Secretary Scott Bessent has warned these nations against retaliatory measures, cautioning, “Doing anything rash would be unwise.”
Why Trump Calls This “Liberation Day”
Speaking from the White House Rose Garden, Trump celebrated his aggressive trade policies, calling April 2, 2025, ‘Liberation Day’.
According to Trump:
“For decades, our country has been looted, pillaged, raped, and plundered by both friends and foes alike. This is the day America’s destiny is reclaimed, the day we begin to ‘Make America Wealthy Again.'”
Trump believes these tariffs will protect American workers, particularly in steel, automotive, and agricultural industries.
What Happens Next?
Will Other Countries Retaliate?
While Trump insists his tariffs are merely “reciprocal,” global leaders are weighing their responses. Some possibilities include:
- The EU imposing retaliatory tariffs on American goods.
- Asian markets adjusting their trade policies to counter the U.S. move.
- Mexico and Canada devising long-term strategies to minimize economic damage.
What About American Consumers?
While the tariffs aim to protect American industries, they could drive up prices on imported goods. This means:
- Higher car prices due to increased import costs.
- More expensive electronics and household items.
- A shift in consumer spending toward domestically made products.
The Final Verdict: A Trade War on the Horizon?
Trump’s aggressive economic policies could mark the beginning of a major global trade war. With Canada, Mexico, and Russia strategically left off the list, other nations must now decide whether to retaliate or negotiate.
One thing is clear: the world economy is entering a new and uncertain phase. Will Trump’s “Liberation Day” strategy truly benefit American industries, or will it spark global economic turmoil?
Only time will tell.
