Trump Delays Tariffs on Canada and Mexico, Maintains Pressure on China

President Donald Trump has agreed to delay imposing 25% tariffs on Canada and Mexico for 30 days, easing tensions and averting a potential trade war with the U.S.'s North American neighbors.

Following last-minute calls with Trump, Canadian Prime Minister Justin Trudeau committed to strengthening border security, including measures to curb migration and the flow of fentanyl, a synthetic opioid linked to the ongoing drug crisis.

Trump also reached an agreement with Mexican President Claudia Sheinbaum, who pledged to deploy troops to Mexico’s northern border in exchange for U.S. efforts to limit the flow of firearms into Mexico.

However, a 10% tariff on Chinese imports remains set to take effect at 12:01 a.m. EST (5:00 a.m. GMT) on Tuesday. Trump described this tariff as an "opening salvo" in trade negotiations with China, warning that it could increase "very, very substantially" if an agreement is not reached.
Canada and Mexico Avoid Immediate Tariffs

The breakthrough with Canada and Mexico came just as both countries were preparing retaliatory tariffs on American goods.

After two phone calls on Monday, Trump and Trudeau announced on social media that they had reached a temporary border security agreement, which would prevent tariffs for at least 30 days. Both leaders framed the deal as a victory.

"As president, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that. I am very pleased with this initial outcome," Trump wrote on Truth Social.

Trudeau said Canada would implement a $1.3 billion (£1 billion) border security plan, including nearly 10,000 frontline workers and enhanced efforts to combat fentanyl trafficking. As part of this initiative, Canada will appoint a "fentanyl czar" and form a joint task force with the U.S. to tackle organized crime, drug smuggling, and money laundering.

Much of Canada’s border security strategy had already been announced in December, including increased coordination with U.S. law enforcement, enhanced information sharing, restricted border traffic, and the deployment of drones and Black Hawk helicopters for surveillance.

The agreement with Mexico came just hours earlier when Trump paused a separate tariff on Mexican goods after Sheinbaum committed to sending 10,000 National Guard troops to the U.S.-Mexico border. Sheinbaum described her phone call with Trump as "a good conversation with great respect for our relationship and sovereignty." Trump called the exchange "very friendly."

This echoes a similar deal from 2019 when Mexico’s government deployed 15,000 soldiers to its northern border to avoid tariffs during Trump's first administration.
Economic Reactions and Future Trade Tensions

Trump has positioned tariffs as a tool to strengthen the U.S. economy, protect jobs, and generate tax revenue.

"Tariffs for us—nobody can compete with us because we're the pot of gold," Trump said on Monday. "But if we don't keep winning and keep doing well, we won't be the pot of gold."

Economists, however, warn that escalating tariffs could lead to higher prices on products such as cars, lumber, steel, food, and alcohol. Stock markets initially dipped on Monday but rebounded slightly following news of the tariff suspensions.

Andrew Furey, Premier of Newfoundland and Labrador, acknowledged that the 30-day pause provided temporary relief but cautioned that a trade war still loomed. "We're left as Canadians feeling a bit confused by this attack from our closest friend, our largest trading partner, our ally, family," Furey told the BBC.

Doug Ford, Premier of Ontario—Canada’s most populous province, which accounts for 38% of the nation’s GDP—welcomed the temporary reprieve but warned of future tariff threats.

"Make no mistake, Canada and Ontario continue to stare down the threat of tariffs," Ford wrote on X. "Whether it's tomorrow, in a month, or a year from now... President Trump will continue to use the threat of tariffs to get what he wants."

Meanwhile, Trump has hinted that his next trade target may be the European Union, though he provided no specific details. He suggested that Britain, which left the EU in 2020, might face fewer trade restrictions.

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