Why Russia, North Korea, Canada and Mexico dodged Donald Trump’s reciprocal tariff list

US President Donald Trump unveiled sweeping reciprocal tariffs on international trading partners on Wednesday, April 2, dubbed “Liberation Day,” but several countries, including Canada, Mexico, Russia, and North Korea, escaped the latest levies for distinct reasons tied to existing trade policies and sanctions.

Speaking at the White House Rose Garden, Trump singled out Canada for what he called “unfair” trading practices, though he stopped short of imposing new tariffs on the northern neighbour.

“Why are we doing this? I mean, at what point do we say, ‘You’ve got to work for yourselves’?” Trump said, pointing to trade deficits as justification for his aggressive stance.

Canada, Mexico exempted

Canada and Mexico, however, were exempted from the reciprocal tariffs due to existing 25% duties tied to Trump’s fentanyl trafficking crackdown, which remain in place, alongside a 10% tariff on Canadian energy and potash.

Goods entering under the US-Mexico-Canada Agreement (USMCA) will also continue to be exempt, according to the White House.

New tariffs on automotive products from Canada and Mexico are set to take effect Thursday, adding pressure despite the reciprocal tariff reprieve.

Canadian Prime Minister Mark Carney warned that Trump’s trade actions “will fundamentally change the international trading system.”

Highlighting additional tariff threats on pharmaceuticals, lumber, and semiconductors, Carney said, “The series of measures will directly affect millions of Canadians.”

“We’re going to fight these tariffs with counter measures.”

Mexico’s President Claudia Sheinbaum adopted a wait-and-see approach.

“It’s not a question of if you impose tariffs on me, I’m going to impose tariffs on you,” she said Wednesday.

“Our interest is in strengthening the Mexican economy.”

Sheinbaum indicated that Mexico would assess the full impact of Trump’s announcement before responding.

How Russia, North Korea escaped tariff

Russia and North Korea, meanwhile, dodged the tariff list entirely.

To be sure, US-Russia trade, though diminished, outpaces some tariff-targeted nations like Mauritius and Brunei. Trade with Russia dropped from around $35 billion in 2021 to $3.5 billion last year, largely due to sanctions tied to Moscow’s invasion of Ukraine.