Trump to Pause Tariffs on Canada & Mexico After They Pledge to Boost Border Enforcement

By: Josh Boak, Fabiola Sanchez & Rob Gillies

President Donald Trump on Monday agreed to a 30-day pause on his tariff threats against Mexico and Canada as America’s two largest trading partners took steps to appease his concerns about border security and drug trafficking.

The pauses provide a cool-down period after a tumultuous few days that put North America on the cusp of a trade war that risked crushing economic growth, causing prices to soar and ending two of the United States’ most critical partnerships.

“I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured,” Trump posted on social media. “FAIRNESS FOR ALL!”

Canadian Prime Minister Justin Trudeau posted Monday afternoon on X that the pause would occur “while we work together,” saying that his government would name a fentanyl czar, list Mexican cartels as terrorist groups and launch a “Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.”

The pause followed a similar move with Mexico that allows for a period of negotiations over drug smuggling and illegal immigration. The 10% tariff that Trump ordered on China is still set to go into effect as scheduled on Tuesday, though Trump planned to talk with Chinese President Xi Jinping in the next few days.

While the trade war feared by investors, companies and political leaders now seems less likely to erupt, that doesn’t mean the drama over Trump’s tariff threats has ended. Canada and Mexico bought some additional time, but Trump could easily renew his tariffs and already plans to announce taxes on imports from the European Union.

All of that leaves the global economy uncertain about whether a crisis has been averted or if a possible catastrophe could still be coming in the weeks ahead.

Trump on Saturday had directed 25% tariffs on imports from Mexico and Canada, with another 10% tariff on Canadian oil, natural gas and electricity. The U.S. president had repeatedly previewed these moves, yet they still managed to shock many investors, lawmakers, businesses and consumers.

Multiple analyses by the Tax Foundation, the Tax Policy Center and the Peterson Institute for International Economics showed that the tariffs could hurt growth, lower incomes and push up prices. But Trump repeatedly insisted — despite promises to curb inflation — that tariffs were necessary tools to get other nations to stop illegal immigration, prevent fentanyl smuggling and treat the United States, in his mind, with respect.

Trump and Mexican President Claudia Sheinbaum announced the monthlong pause on increased tariffs against one another after what Trump described on social media as a “very friendly conversation,” and he said he looked forward to the upcoming talks.

“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” the president said on social media.

Trump said the talks would be headed by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Secretary of Commerce nominee Howard Lutnick and high-level representatives of Mexico. Sheinbaum said she was reinforcing the border with 10,000 members of her country’s National Guard and that the U.S. government would commit “to work to stop the trafficking of high-powered weapons to Mexico.”

In 2019, when Mexico’s government also avoided tariffs from Trump’s administration, the government announced it would send 15,000 soldiers to its northern border.

          (AP)