One month after negotiations, Trump and the leaders of Canada and Mexico declare tariffs will be postponed.

Justin Trudeau of Canada and Claudia Sheinbaum of Mexico shared on social media their intentions to monitor respective borders. China-sourced goods were subject to new levies.

In order to avoid, at least for the time being, tariffs that might have increased prices for American consumers and slowed down the economies of Canada and Mexico, President Donald Trump agreed to postpone the 25% tariff on imports from those two countries for a month after their leaders announced steps to increase border security.

On social media Monday afternoon, Canadian Prime Minister Justin Trudeau announced that the country would invest $1.3 billion in a plan to fortify its border with more troops, technology, and helicopters, in addition to other resources to halt the flow of fentanyl. At the end of last year, Canada announced its $1.3 billion investment in immigration and the border.

Trump soon followed suit, highlighting fentanyl and stating that tariffs will be “paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured.”

In order to combat drug trafficking from Mexico into the United States, especially fentanyl, Mexican President Claudia Sheinbaum said earlier in the day on social media that her country will instantly bolster its northern border with 10,000 men of its national guard.

In his own social media tweet, Trump reiterated that the United
On Saturday, Trump issued an executive order imposing 25% tariffs on almost all goods entering the US from Canada and Mexico, which will take effect on Tuesday. The action ran the risk of starting a trade war with two of the United States’ closest trading partners, which might have raised the cost of a number of products for American consumers, such as fuel, fresh vegetables, automobiles, and building supplies.

Along with imposing a 10% tariff on all Chinese imports, Trump also took action to remove a loophole that permits Chinese e-commerce companies, such as Temu and Shein, to send shipments under $800 into the US duty-free, evading penalties. China announced its own duties on some U.S. goods shortly after the tariffs went into effect on Tuesday at 12:01 a.m. ET.

Additionally, China had stated that it will contest the tariffs at the World Trade Organization and respond with unidentified “countermeasures.”

Following the announcement of the agreement with Mexico, stocks partially recovered their losses from Monday morning’s decline in response to the tariff announcement over the weekend. Economists and industry associations have cautioned that the tariffs may increase costs in the US and cause an economic slowdown because the US imports more goods from Mexico than any other nation.

Trump also threatened to impose tariffs on Mexico during his first term, but he withdrew his threat less than two weeks later when Mexico announced plans to expand a program whereby some migrants seeking asylum in the United States would wait for their immigration court hearings in Mexico and deploy its national guard across the nation to crack down on immigration.

On Saturday evening, Trudeau declared that Canada would impose a 25% tariff on $155 billion worth of U.S. goods in retaliation for Trump’s tariffs. As of Tuesday, the day the United States announced it will start collecting tariffs on Canadian exports, it was supposed to include immediate tariffs on $30 billion worth of goods.Under the leadership of Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and Secretary of State Marco Rubio, states will continue to negotiate border security with Mexico.
Trump said that Canada had treated the United States unfairly and appeared to downplay the importance of trade with the country earlier Monday.

“They are not required to produce our automobiles. We don’t require lumber from them. Trump told reporters, “We have all the agriculture we need, so we don’t need them for agricultural products.”

According to industry analysts, tariffs on Canada would have increased the cost of a wide range of products, such as autos, heating fuel, and lumber.

In the presidential order imposing the tariffs, the White House said that the action was a reaction to the influx of immigration and fentanyl from Canada and Mexico, which Trump was claiming was a national emergency. In a national emergency, the president can control trade under the International Emergency Economic Powers Act.

U.S. Customs and Border Protection data shows that last year, nearly all of the 21,900 pounds of fentanyl that U.S. law enforcement collected was at the southern border, while only 43 pounds were found at the northern border.

However, Trump appeared to go against that logic in a number of social media tweets over the weekend, urging businesses to produce their goods in the US and pointing to a trade deficit with the three nations. Trump claimed in a different post that the tariffs would force Canada to join the US.

“We give SUBSIDIZE Canada hundreds of billions of dollars. Why? There’s no explanation. Nothing they own is necessary for us. We should build our own cars, have more lumber than we can ever use, and have limitless energy. Canada is no longer a viable nation without this enormous subsidy. It’s harsh, but accurate! Canada ought to become our beloved 51st state as a result. Canada’s citizens will benefit from significantly better military protection, far reduced taxes, and no tariffs! Trump stated on Truth Social.

Sheinbaum claimed that during a phone conversation Monday morning, she and Trump came to an arrangement over the tariff delay for Mexico. She claimed that during the discussion, she also urged American officials to take more action to halt the importation of powerful firearms into Mexico, which she claimed are being used by criminal organizations in Mexico.

Sheinbaum claimed that when Trump asked her how long the tariffs should be suspended, she first replied indefinitely.

She claimed that after some back and forth, Trump accepted her suggestion for a one-month halt.

“I am sure that in this month we will be able to give results,” she stated.