Trump pauses tariffs on Canada, Mexico

Trump pauses tariffs on Canada, Mexico
Trump pauses tariffs on Canada, Mexico

President Donald Trump has temporarily suspended threatened 25% tariffs on Mexico and Canada following successful last-minute negotiations, while proceeding with a 10% tariff on Chinese imports. The 30-day pause for North American neighbors came after both countries agreed to enhanced border security measures.

Canadian Prime Minister Justin Trudeau committed to strengthening the U.S.-Canada border to address migration and fentanyl trafficking. The agreement includes increased law enforcement coordination, information sharing, border traffic limitations, and deployment of surveillance drones and Black Hawk helicopters.

Mexican President Claudia Sheinbaum agreed to deploy 10,000 National Guard troops to Mexico's northern border, while the U.S. promised to limit gun flow into Mexico. This mirrors a 2019 agreement when Mexico sent 15,000 soldiers to avoid tariffs during Trump's first administration.

Meanwhile, the 10% tariff on Chinese imports took effect, notably affecting Chinese e-commerce companies like Temu and SHEIN by revoking the $800 duty-free exemption for low-value shipments. China responded with retaliatory tariffs, including 15% on coal and liquefied natural gas, and 10% on crude oil and agricultural machinery.

Trump described the Chinese tariffs as an "opening salvo" that could become "very substantial" without an agreement. He tied potential increases to China's cooperation on stopping fentanyl exports, though China maintains this is an American problem.

Ontario Premier Doug Ford welcomed the Canadian tariff pause but warned that Trump would likely continue using tariff threats as leverage. Trump has already indicated the European Union could be his next tariff target, though suggested Britain might be spared significant duties.

The agreements demonstrate Trump's continued use of tariff threats as a negotiating tool to achieve broader policy objectives, particularly regarding border security and trade relations.