WASHINGTON (AP) — United States President Donald Trump agreed on Monday to a 30-day pause in his tariff threats against Mexico and Canada, after his two biggest trading partners took steps to address his concerns about border security and drug trafficking.
The pauses provide a cooling-off period after a tumultuous few days that brought North America to the brink of a trade war that could have crushed economic growth, caused an increase in prices, and ended two of the United States' most important partnerships.
What was Trump's agreement with Canada?
"The proposed tariffs will be postponed for at least 30 days as we work together," posted Canadian Prime Minister Justin Trudeau on social media X on Monday afternoon, announcing that his government would appoint a fentanyl czar, classify Mexican drug cartels as terrorist groups, and launch a "Canada-United States Joint Task Force to combat organized crime, fentanyl, and money laundering."
Trump had ordered on Saturday tariffs of 25% on imports from Mexico and Canada, with an additional tariff of 10% on Canadian oil, natural gas, and electricity. He also ordered an additional tariff of 10% on imports from China.
The White House confirmed the pause on tariffs for Canada, which followed a similar move with Mexico allowing for a period of negotiations on drug trafficking and illegal immigration.
Through his Truth Social network, Trump said that "Canada has agreed to ensure that we have a secure northern border and finally put an end to the deadly scourge of drugs such as fentanyl that have been coming into our country...will implement its $1.3 billion border plan and, according to Prime Minister Trudeau, 'will strengthen the border with new helicopters, technology, and personnel, better coordination with our American partners, and more resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working to protect the border'".
All tariffs were scheduled to begin at midnight on Tuesday. Canada and Mexico threatened retaliation, which had increased the possibility of a broader trade war in the region.
There is still a risk that tariffs will be implemented, leaving the global economy uncertain about whether a crisis has been averted or if a potential catastrophe could still come in the following weeks.
The 10% tariff that Trump ordered on China was still scheduled to take effect, although Trump planned to speak with Chinese President Xi Jinping in the coming days.
What was the agreement between Trump and Mexico?
Trump and Mexican President Claudia Sheinbaum announced a one-month pause in the increase of mutual tariffs after what the US president described on social media as a "very friendly conversation," and said he was looking forward to the next discussions.
"I hope to participate in those negotiations, with President Sheinbaum, as we try to reach an 'agreement' between our two countries," Trump commented on social media.
Trump said that the talks would be led by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Commerce Secretary nominee Howard Lutnick, and high-level representatives from Mexico.
Sheinbaum said she would reinforce the common border with 10,000 members of the Mexican National Guard and that the United States government committed to working to stop the trafficking of high-powered weapons towards the southern border.