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Trump pauses Canada, Mexico tariffs after border pledges

1 26
04.02.2025
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Business & Economy

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The Big Story

Trump pauses Canada, Mexico tariffs after border security pledges

President Trump secured early concessions from Canada and Mexico on Tuesday, while agreeing to pause implementing tariffs on the U.S. trading partners for one month.

© The Associated Press

The announced delay on the 25 percent tariffs against Canada — set to start Tuesday — came after Trump and Canadian Prime Minister Justin Trudeau's second conversation Monday.

Trump said Canada agreed to secure the northern border and work to combat the flow of fentanyl into the U.S., adding that it will implement its $1.3 billion border plan and agreed to take other steps to secure the border.

“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, 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. FAIRNESS FOR ALL!” Trump posted online.

Trudeau, while announcing the pause on social platform X, outlined Canada’s new plans, which will appoint a “Fentanyl Czar,” list cartels as terrorists, “ensure 24/7 eyes” on the U.S.-Canadian border and launch a joint strike force with the U.S. to take on crime, fentanyl flow and money laundering.

Trump and Trudeau both signed a new intelligence directive on organized crime and fentanyl with $200 million in funding, they said.

The agreement with Canada mirrors the same deal Trump struck with Mexican President Claudia Sheinbaum earlier Monday, ahead of implementation of 25 percent tariffs on Mexico.

They announced Mexico will send to the U.S. border 10,000 soldiers tasked with stopping the flow of fentanyl and immigrants entering the U.S. illegally.

Trump on Saturday signed off on the tariffs on both Mexico and Canada and 10 percent tariffs on China. There has not been an announcement about the tariffs on China, though China’s Ministry of Commerce said it would file a legal case against the U.S. at the World Trade Organization.

Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.

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