Exemption allows Canadian, Mexican goods to not have tariffs

TORONTO — U.S. President Donald Trump raised the tariffs on Canadian goods to 35% last week, but a key exemption for Canada and Mexico shields the vast majority of goods from the punishing duties.

What You Need To Know • A key carve-out for Canada and Mexico shields the vast majority of goods from the punishing duties, even though U.S. President Donald Trump raised the tariffs on Canadian goods to 35% last week • Goods that comply with the 2020 United States-Mexico-Canada Agreement that Trump negotiated during his first term are excluded from the tariffs • Canada’s central bank says 100% of energy exports and 95% of other exports are compliant with the agreement • The Royal Bank estimates that almost 90% of Canadian exports appear to have accessed the U.S. market duty free in Apri