Donald Trump announced he would raise tariffs on Canada by an additional 10pc as he reacted again to the country’s anti-tariffs advertisement featuring Ronald Reagan, the former US president.

As is the case with Mexico’s light vehicle exports to the United States, the U.S. content in USMCA-compliant medium- and heavy-duty trucks made in Mexico will be exempt from the 25% tariff the U.S. will implement on Nov. 1.

The United States is giving Mexico more time to make trade policy changes to avoid an increase in tariffs that had been set to go into effect on Saturday, President Claudia Sheinbaum of Mexico said Monday. “For the time being, there is no situation that would lead to a special tariff being imposed on Nov. 1,” Ms. Sheinbaum said.

President Donald Trump says he plans to hike tariffs on imports of Canadian goods by an extra 10% because of an anti-tariff television ad aired by the province of Ontario.

Canada could reshape the electric vehicle landscape in North America by removing its tariffs on Chinese electric vehicles.