Trump, along with the leaders of Canada and Mexico, announced that tariffs will be postponed for one month following their discussions.

 Mexico's Claudia Sheinbaum and Canada's Justin Trudeau shared on social media their intentions to tighten border security. Additionally, new tariffs on goods from China are scheduled to take effect.

Feb. 3, 2025, 9:41 PM GMT+6 / Updated Feb. 4, 2025, 4:09 AM GMT+6

A few days after President Donald Trump announced a 25% tariff on imports from Canada and Mexico, he agreed to delay its implementation for a month. This decision came after Canada and Mexico both revealed plans to increase border security, preventing the tariffs—at least temporarily—that could have raised prices for U.S. consumers and harmed the economies of all three countries.

On Monday afternoon, Canadian Prime Minister Justin Trudeau shared that Canada would invest $1.3 billion in reinforcing its border with new helicopters, technology, personnel, and additional resources to combat fentanyl trafficking. This plan had been announced late last year.

Trump soon followed suit, emphasizing that the tariffs would be "paused for 30 days to evaluate whether a final economic deal can be reached with Canada."

Earlier, Mexican President Claudia Sheinbaum also posted on social media that Mexico would deploy 10,000 National Guard troops to its northern border to combat drug trafficking, especially fentanyl. Trump confirmed that the U.S. would continue its negotiations with Mexico, led by key officials such as Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick.

Trump had signed an executive order on Saturday imposing a 25% tariff on most goods imported from Canada and Mexico, set to take effect Tuesday. This move risked sparking a trade war with two of America's closest trade partners, potentially increasing prices for goods like cars, produce, homebuilding materials, and gasoline.

Additionally, Trump imposed a 10% tariff on all Chinese imports and moved to close a loophole that allowed Chinese e-commerce companies, like Temu and Shein, to avoid tariffs by shipping packages worth less than $800 into the U.S. duty-free. China has stated its intent to challenge these tariffs at the World Trade Organization.

The announcement of the tariffs initially caused a dip in stock prices Monday morning, but they recovered slightly after the deal with Mexico was revealed. Economists and business groups had warned that the tariffs could hurt the U.S. economy by increasing prices and slowing growth.

During his first term, Trump had also threatened tariffs on Mexico, but he backed down after Mexico offered to deploy its national guard and strengthen measures to prevent migration.

In response to Trump's tariff announcement, Trudeau revealed that Canada would impose a 25% tariff on $155 billion worth of U.S. goods, including $30 billion worth of items set to be taxed starting Tuesday, the same day the U.S. tariffs on Canadian goods were to go into effect.

Earlier, Trump had downplayed the importance of trade with Canada, suggesting the U.S. could manage without Canadian products like cars, lumber, and agricultural goods. Industry analysts, however, warned that the tariffs would raise prices on a wide range of goods, including lumber, vehicles, and heating fuel.

The White House framed the tariff decision as a national emergency response to the flow of fentanyl and immigrants from Canada and Mexico, citing the president's authority under the International Emergency Economic Powers Act. However, in several social media posts, Trump shifted his focus to a trade deficit with the three countries, urging companies to manufacture products within the U.S.

Trump also used social media to suggest that Canada could benefit from joining the U.S. as the 51st state, citing lower taxes and enhanced military protection.

Sheinbaum later confirmed that she and Trump reached the agreement on the tariff delay during a phone call Monday morning. She also requested U.S. action to stop the flow of high-powered firearms into Mexico, which are being used by criminal groups. After some negotiation, Sheinbaum suggested a month-long pause, which Trump agreed to, expressing confidence that progress would be made during that period.