President Donald Trump has paused his administration’s tariffs on Mexican goods that fall under the U.S.–Mexico–Canada Agreement until April 2, seemingly excluding Canada from the exemption for now.
Trump revealed on Thursday he spoke with Mexican President Claudia Sheinbaum about the temporary agreement. He provided a similar exemption for the Big Three U.S. automakers — General Motors, Ford, and Stellantis — a day earlier.
“I did this as an accommodation, and out of respect for, President Sheinbaum,” Trump posted on Truth Social. “Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl. Thank you to President Sheinbaum for your hard work and cooperation!”
The U.S. imposed its long-awaited 25 percent tariffs on Mexico and Canada on Tuesday. The trade taxes caused the stock market to drop initially. However, after Trump paused tariffs on auto imports under the USMCA, stocks rebounded slightly.
Thursday’s announcement comes after Commerce Secretary Howard Lutnick teased that a one-month delay of tariffs on Mexico and Canada likely applying to all USMCA goods would be agreed upon soon.
Trump did not mention Canada in the announcement. But in a separate social media post, he said outgoing Canadian Prime Minister Justin Trudeau was “using the Tariff problem” to “run again” in the upcoming election.
“So much fun to watch!” he added.
Additionally, the U.S. doubled its existing tariffs on Chinese goods to 20 percent. After the move, China escalated its rhetoric against the U.S.
“If the U.S. truly wants to solve the [fentanyl] issue, then the right thing to do is to consult with China by treating each other as equals,” the Chinese embassy in the U.S. said in a pointed message. “If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.”
China is a primary producer of fentanyl and the drug’s precursor chemicals before they are shipped to Mexico and trafficked mainly across the southern border.
The southern border accounts for 98 percent of all fentanyl seizures, while less than 1 percent of fentanyl is seized along the northern border. About 4,500 pounds of fentanyl have been seized in the U.S. since September, according to U.S. Customs and Border Protection.
Trump defended his sweeping tariffs during a joint session of Congress on Tuesday night, saying the policies are justified because U.S. has “been ripped off for decades by nearly every country on Earth.” He vowed to stop it.
Canada and China have already implemented retaliatory tariffs of their own targeting U.S. imports, while Mexico vows to pursue similar measures. Before her conversation with Trump, Sheinbaum was expected to make an official announcement regarding next steps on Sunday.
In response to the tariff pause, Sheinbaum thanked Trump and indicated the two will continue working together on curbing illegal immigration, stopping the flow of fentanyl into the U.S., and securing the southern border.
“Many thanks to President Donald Trump. We had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results, within the framework of respect for our sovereignties,” Sheinbaum posted on X. “We will continue to work together, particularly on migration and security issues, which include reducing the illegal crossing of fentanyl into the United States, as well as weapons into Mexico.”