President Trump on Monday paused his plans to implement potentially devastating tariffs on imports from Mexico and Canada for at least a month after talks with the leaders of both countries.
The tariffs, had they gone into effect, could have had massive impacts on the economies of all three nations, potentially triggering inflation, recessions and a spiraling trade war.
It marks the second time in this presidency Trump vowed a massive and disruptive tariff on a long-time ally, only to quickly freeze it after gaining some concessions.
Trump originally signed the tariff orders Saturday — 25% on Canada and Mexico (10% on energy), and 10% on China as well. They were due to take effect at 12:01 a.m. ET Tuesday.
Trump took the deals to pause the implementation of tariffs as wins, touting them on Truth Social and promising further negotiations over the next month — though he did not say what the final goals of those talks would be.
Mr. Trump wrote on Truth Social in the morning that he and Mexican President Claudia Sheinbaum “agreed to immediately pause the anticipated tariffs for a one month period.” The pause, he said, will allow “negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico.”
The president wrote that he had a “very friendly conversation” with Sheinbaum in which she “agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States.”
“These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country,” Mr. Trump wrote.
At the White House later in the day, Mr. Trump told reporters that the call “went very well, in the sense that they’re very strong now on the border.”
Sheinbaum unveiled the details of the deal in an earlier post on X, saying that the U.S. is “committed to working to prevent the trafficking of high-powered weapons to Mexico” and that “our teams will begin working today on two fronts: security and trade.” She wrote in Spanish that Mexico “will immediately reinforce the northern border with 10,000 members of the National Guard to prevent drug trafficking from Mexico to the United States, particularly fentanyl.”
In the afternoon, Canadian Prime Minister Justin Trudeau issued a statement saying Mr. Trump is pausing tariffs on Canadian imports for at least 30 days, following a pair of phone calls between the two leaders. In return, Trudeau said Canada is implementing a $1.3 billion plan to protect the border. Mr. Trump soon confirmed the deal.
“I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured,” Mr. Trump wrote. “FAIRNESS FOR ALL!”
In reaction to Trump signing of the orders imposing the 25% tariff on imports from Mexico and Canada, as well as a 10% levy on goods from China, U.S. markets tumbled in early trading Monday morning amid fears that the tariffs could drive up prices for consumer goods. Mexico and Canada had both said they would issue retaliatory tariffs on U.S. imports, raising fears of a trade war that could stifle economic activity between the U.S. and its neighbors.
The economic consequences of the tariffs could have been profound for all three countries.
Economists feared they could have plunged both Mexico and Canada into recession, while American consumers stood to face a significant increase in costs and erosion of purchasing power.
