President Donald Trump on Monday agreed to a 30-day pause on his tariffs threat against Mexico and Canada as America’s two largest trading partners took steps to appease his concerns about border security and drug trafficking.
The pauses provide a cool-down period after a tumultuous few days that put North America on the cusp of a trade war that risked crushing economic growth, causing prices to soar and ending two of the United States’ most critical partnerships.
“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,” Trump posted on social media. “FAIRNESS FOR ALL!”
Canadian Prime Minister Justin Trudeau posted Monday afternoon on X that the pause would occur “while we work together.”
I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…
He said his government would name a fentanyl czar, list Mexican cartels as terrorist groups and launch a “Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.”
The pause followed a similar move with Mexico that allows for a period of negotiations over drug smuggling and illegal immigration. The 10% tariff that Trump ordered on China is still set to go into effect as scheduled on Tuesday, though Trump planned to talk with Chinese President Xi Jinping in the next few days.
READ ALSO: President Trump Imposes Tariffs on Canada, Mexico, and China, effective from Feb. 4
While the trade war feared by investors, companies and political leaders now seems less likely to erupt, that doesn’t mean the drama over Trump’s tariff threats has ended. Trump has indicated that new tariffs against the European Union could be announced soon.
All of that leaves the global economy uncertain about whether a crisis has been averted or if a possible catastrophe could still be coming in the weeks ahead.
Trump and Mexican President Claudia Sheinbaum announced the monthlong pause on increased tariffs against each other after what Trump described on social media as a “very friendly conversation,” and he said he looked forward to the upcoming negotiations.
Trump said the talks would be headed by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Commerce Secretary nominee Howard Lutnick and high-level representatives of Mexico. Sheinbaum said she was reinforcing the border with 10,000 members of her country’s National Guard and that the U.S. government would commit “to work to stop the trafficking of high-powered weapons to Mexico.”
Mexico’s government also avoided tariffs from Trump’s administration, the government announced it would send 15,000 soldiers to its northern border.
But for much of Monday, the outlook was worrisomely different for Canada, only for an agreement to come together.
A senior Canadian official said Canada was not confident it could avoid the looming tariffs as Mexico did. That’s because Canada feels as if the Trump administration has been shifting its requests of Canada more than it did for Mexico. The official spoke on condition of anonymity, having not been authorized to speak publicly.
Conservative Leader Pierre Poilievre urged the government to use the 30-day window to strengthen Canada’s economy and prevent the tariffs from returning.
Like Canadians across the country, Conservatives are relieved to hear that there will be a one month pause on tariffs from the United States that would have hurt workers, families and businesses on both sides of the border.
But this is not a time to sit back. We must urgently…
The U.S. president meanwhile indicated that more import taxes could be coming against China: “If we can’t make a deal with China, then the tariffs will be very, very substantial.”
