Why Certain Countries, Including Russia and Canada, Escaped Trump’s New Tariff List?
U.S. had already implemented a 25 percent tariff on imports from Canada and Mexico.
Former U.S. President Donald Trump recently announced a sweeping set of tariffs on various nations, imposing duties ranging from 10 percent to 50 percent. However, several countries—including Russia, Canada, Mexico, North Korea, and Cuba—were notably absent from the list, prompting speculation about the reasons behind their exclusion.
Why Were These Countries Spared?
While major U.S. trading partners such as India (26 percent), the European Union (20 percent), and Vietnam (46 percent) faced steep tariff hikes, Canada and Mexico were not included in Trump’s April 2 tariff announcement. However, this does not mean they have completely avoided trade penalties.
Earlier this year, the U.S. had already implemented a 25 percent tariff on imports from Canada and Mexico, with Canadian energy and potash subjected to a lower 10 percent rate. Moreover, goods traded under the US- Mexico- Canada Agreement (USMCA) remain exempt from the latest round of tariffs. Despite this, new levies on auto parts and other products are set to take effect soon.
In response, Canadian Prime Minister Mark Carney vowed to fight back.
“We are going to fight these tariffs with countermeasures. We are going to protect our workers,” he told Bloomberg.
Similarly, Mexico is expected to issue a formal response, with President Claudia Sheinbaum set to address the matter in an upcoming press conference.
Russia, North Korea, and Cuba: A Different Case
Unlike Canada and Mexico, countries such as Russia, North Korea, Cuba, and Belarus were also left out of the tariff hike—but for a different reason.
A White House official, speaking anonymously to The New York Times, explained that these countries are already under extensive U.S. sanctions, significantly limiting their trade with the U.S.
“These countries already face extremely high tariffs, and our previously imposed sanctions restrict any meaningful trade with them,” the official said.
Russia’s Exemption: Strategic or Economic?
Some experts believe Russia’s exclusion is tied to ongoing geopolitical considerations. Saurav Ghosh, co-founder of Jiraaf, a bond investment platform, suggested that Trump may be keeping diplomatic channels open with Russian President Vladimir Putin.
“Given the existing sanctions, trade between the U.S. and Russia had already declined,” Ghosh noted. “Furthermore, if Trump is negotiating with Putin on ending the Ukraine conflict, he may need Russia’s cooperation.”
Additionally, Trump’s stance on countries purchasing Russian oil and gas remains unclear, leaving room for potential policy shifts in the future.
Trump’s Target: Nations with Trade Surpluses
Trump’s tariff strategy appears to be aimed at countries with significant trade surpluses with the U.S. For instance, China, which reported a $295 billion trade surplus with the U.S. in 2024, has been hit with a 34 percent tariff.
“Asian nations and the EU have larger trade deficits with the U.S., so naturally, they are higher on the list,” Ghosh explained. “Additionally, Trump has cited non-tariff barriers such as domestic VAT policies and currency manipulation as key factors in determining reciprocal tariffs.”
One of the biggest surprises in Trump’s tariff announcement was the aggressive stance against Japan (24 percent) and Vietnam (46 percent), which have been major U.S. trade partners.
“The harsh tariffs on Japan and Vietnam were unexpected,” Ghosh remarked.
What’s Next? Global Trade Repercussions
With Trump’s tariffs already reshaping global trade, several countries are preparing retaliatory measures. Canada and Mexico are assessing their options while Asian and European nations brace for economic impact.
For now, Russia and North Korea remain outside Trump’s immediate tariff targets, but given the fluid nature of international relations, that could change depending on diplomatic developments in the months ahead.