Government

Trump Delays Tariffs on Canada and Mexico for 30 Days

Published February 4, 2025

U.S. President Donald Trump announced on Monday that his administration will pause its planned tariffs on imports from Canada and Mexico for a duration of 30 days. This decision comes as Trump claims to have secured new commitments from both neighboring countries aimed at enhancing border security.

These agreements with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum were made just before the tariffs were due to take effect, which was scheduled for Tuesday. During this month-long period, Trump expressed his intention to negotiate even better arrangements with Canada and Mexico, accusing them of insufficient action against fentanyl trafficking and illegal immigration.

These last-minute changes in policy are typical of Trump's approach to governance. This announcement followed the signing of executive orders on Saturday that imposed a 25 percent tariff on goods from Canada and Mexico, alongside an additional 10 percent tariff on imports from China.

Previously, Trump had stated that nothing could be done to prevent these extensive duties, blaming the three countries for a lack of decisive measures to tackle trade imbalances with the United States.

U.S. President Donald Trump speaks to reporters in the Oval Office of the White House in Washington on Feb. 3, 2025. (Getty/Kyodo)

On his Truth Social platform, Trump said, "As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that. I am very pleased with this initial outcome." After his discussion with Prime Minister Trudeau, the Canadian leader confirmed a budget of 1.3 billion Canadian dollars (approximately $901 million) to bolster border security.

President Sheinbaum of Mexico also indicated that she had a constructive conversation with Trump, agreeing to a similar pause on tariffs. She mentioned that Mexico would deploy 10,000 troops to its northern border to help curb drug trafficking.

Additionally, Sheinbaum noted that as part of this agreement, the Trump administration will take steps to prevent the flow of high-powered weapons into Mexico.

Trump, who has often identified as a "tariff man," remarked that the troop deployment from Mexico aims to stop the influx of illegal migrants crossing into the United States.

The negotiations will involve U.S. secretaries of state, commerce, and treasury, as well as high-level representatives from Mexico. Trump indicated his eagerness to participate in the discussions with President Sheinbaum.

Later in the Oval Office, Trump told reporters that he holds the Mexican president in high regard. However, he emphasized the critical need to halt the import of fentanyl and illegal immigration, regardless of personal feelings.

He remarked that the communication with Mexico was productive, noting their recent commitment to border strength.

Given that Mexico has become the leading source of imported goods to the United States in 2023, surpassing China for the first time in over a decade, the impacts of these tariffs are significant. The changing dynamics of trade relations have arisen in part due to tensions between Washington and Beijing.

The status of the tariffs on imports from China remains uncertain as their enforcement was anticipated to commence at midnight.

While signing various executive orders on different issues, Trump stated that conversations with China are probable in the next 24 hours.

He previously voiced concerns regarding Canada's trade practices, claiming that Canada is challenging to do business with and is not buying enough U.S. agricultural products and vehicles.

Trump said, "I wouldn't mind making our cars in the United States, so we have a problem there...We don't need Canada to make our cars."

The United States possesses a trilateral free trade agreement with Canada and Mexico, and together with China, these nations represented approximately 40 percent of total U.S. imports in 2023. Many economists caution that imposing such high tariffs could lead to increased prices for consumers, conflicting with Trump’s claims of reducing living costs.

Recently, Trump has acknowledged the short-term disruptions these tariffs might cause domestically but insists that ultimately they will benefit the U.S. economy.

To avoid significant spikes in gasoline prices, Trump indicated that Canadian energy will incur a 10 percent tariff instead of the 25 percent rate applied to other goods from Canada.

tariffs, trade, security