Donald Trump agrees to pause tariffs on Canada and Mexico after border enforcement pledges
President Donald Trump speaks to reporters next to Air Force One after arriving back at Joint Base Andrews, Md., Sunday, Feb. 2, 2025. (AP Photo/Ben Curtis)
President Donald Trump on Monday held off on his tariff threats against Mexico and Canada for 30 days after the two US neighbors agreed to boost border security efforts.
Trump on Saturday had directed that 25% tariffs on most imports from the two American partners — and 10% on Canadian energy products — go into effect at midnight Tuesday. The two nations threatened retaliation of their own, raising the prospects of a broader regional trade war.
In a statement on the social platform X, Canadian prime minister Justin Trudeau said that on a call with Trump, he pledged additional cooperation on border security. It follows similar moves by Mexico earlier Monday.
“Proposed tariffs will be paused for at least 30 days while we work together,” Trudeau said.
Earlier, the Mexican government said the planned tariffs would be put on hold for a month to give time for further negotiations. Mexico also plans to deploy 10,000 members of its national guard to address drug trafficking at the border.
US President Donald Trump and Mexican leader Claudia Sheinbaum announced the move after what Mr Trump described as a “very friendly conversation”, and he said he looked forward to upcoming talks.
He said the talks would be headed by secretary of state Marco Rubio, secretary of treasury Scott Bessent and secretary of commerce nominee Howard Lutnick, and high-level representatives from Mexico.
“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” the president wrote on social media.
As a condition ahead of the talks, Ms Sheinbaum laid out changes in border policies, and Mr Trump confirmed Mexico’s deployment of troops.
“Mexico will reinforce the northern border with 10,000 members of the National Guard immediately, to stop drug trafficking from Mexico to the United States, in particular fentanyl,” Ms Sheinbaum posted on X.
“The United States commits to work to stop the trafficking of high powered weapons to Mexico.”
The Mexican president added that the two countries will continue talks on security and trade and that “the tariffs are put on pause for a month from now”.
Mr Trump’s tariffs against China are still scheduled to come into effect on Tuesday. Uncertainty remains about the durability of any deals and whether the tariffs are a harbinger of a broader trade war as he has promised more import taxes to come.
A senior Canadian official said he was not confident his country could avoid the tariffs because Canada feels as if the US administration is shifting its requests of Canada more than it did for Mexico.
Asked on Monday afternoon what Canada could offer in talks to prevent tariffs, Mr Trump told reporters in the Oval Office: “I don’t know.”
Mr Trump used his Monday social media post to repeat his complaints that Canada has been uncooperative, despite decades of friendship and partnerships that range from the Second World War to the response to the 9/11 terrorist attacks on the US.
“Canada doesn’t even allow US Banks to open or do business there,” Trump posted. “What’s that all about? Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the US from drugs pouring through the Borders of Mexico and Canada.”
He also indicated that more import taxes could be coming against China, saying: “If we can’t make a deal with China, then the tariffs will be very, very substantial.”
Financial markets, businesses and consumers are bracing for the impact of the new tariffs that also include an import tax against China.
Stock markets are set for a modest sell-off, suggesting some hope that the import taxes that could push up inflation and disrupt global trade and growth would be short-lived.
But the outlook reflected a deep uncertainty about a president who is very keen tariffs, even saying the US government made a mistake in 1913 by switching to income taxes as its primary revenue source.
Mr Trump said on Sunday that the tariffs would be lifted if Canada and Mexico did more to crack down on illegal immigration and fentanyl smuggling, though there are no clear benchmarks.
He also said the US can no longer run a trade imbalance with its two largest trade partners.
Mexico is facing a 25% tariff, while Canada would be charged 25% on imports to the US and 10% on its energy products.
Beijing is facing a 10% additional tariff due to its role in the making and selling of fentanyl, the White House said.
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