New Delhi (National Times): Former U.S. President Donald Trump recently unveiled a new wave of tariffs, targeting countries with rates as high as 50%. However, some nations—including Russia, Canada, Mexico, North Korea, and Cuba—were notably absent from the list, sparking discussions about why they were spared.
Exemptions for Canada and Mexico
While Canada and Mexico were not included in Trump’s April 2 tariff announcement, this doesn’t mean they’ve escaped trade restrictions altogether. The U.S. had already imposed a 25% tariff on imports from both countries earlier this year, while Canadian energy and potash were subject to a lower 10% rate.
Additionally, goods traded under the U.S.-Mexico-Canada Agreement (USMCA) remain exempt from these latest duties. However, new tariffs on auto parts and other products are expected to come into effect soon.
In response to these developments, Canadian Prime Minister Mark Carney emphasized his country’s commitment to countering the measures:
“We are going to fight these tariffs with countermeasures. We are going to protect our workers,” he told Bloomberg.
Meanwhile, Mexican President Claudia Sheinbaum is expected to address the issue in an upcoming press conference.
Why Russia, North Korea, and Cuba Were Spared
Unlike Canada and Mexico, countries such as Russia, North Korea, Cuba, and Belarus were omitted from Trump’s tariff list for different reasons.
A White House official, speaking anonymously to The New York Times, explained that these nations are already subject to heavy U.S. sanctions, which limit trade between them and the U.S.
“These countries already face significant tariffs and economic sanctions, making any further trade restrictions unnecessary,” the official stated.
Russia’s Omission: A Political Move?
Some experts believe that Russia’s exclusion may be linked to ongoing diplomatic considerations between Trump and Russian President Vladimir Putin.
According to Saurav Ghosh, co-founder of Jiraaf, a bond investment platform, the existing U.S. sanctions have already drastically reduced trade with Russia.
“Given the current sanctions, trade between the U.S. and Russia is already minimal,” Ghosh noted. “If Trump is negotiating with Putin regarding the Ukraine war, he might want to keep Russia on his side.”
Furthermore, Trump’s position on countries importing Russian oil and gas remains uncertain, leaving room for possible policy shifts.
Trump’s Focus: Nations with Trade Surpluses
Trump’s latest tariff strategy appears to target countries with large trade surpluses with the U.S. For instance, China, which recorded a $295 billion trade surplus with the U.S. in 2024, has been hit with a 34% tariff.
“The countries facing higher tariffs are those with a significant trade imbalance with the U.S.,” Ghosh explained. “Trump has also pointed to non-tariff barriers such as domestic VAT policies and currency manipulation as factors influencing his tariff decisions.”
One of the most unexpected elements of Trump’s new tariffs was the strong action against Japan (24%) and Vietnam (46%), which have long been important U.S. trade partners.
“The steep tariffs on Japan and Vietnam were a surprise,” Ghosh remarked.
Global Reactions and What Lies Ahead
With these new tariffs shaking up global trade, many nations are considering retaliatory measures. Canada and Mexico are assessing their next moves, while Asian and European countries brace for economic challenges.
For now, Russia, North Korea, and Cuba remain outside Trump’s tariff targets, but the situation could evolve based on future diplomatic and economic developments.
