President Donald Trump has temporarily halted his administration’s newly imposed tariffs on Mexican and Canadian goods covered under the U.S.–Mexico–Canada Agreement, the White House announced Thursday. The pause, which lasts until April 2, partially reverses the 25 percent tariffs that took effect just two days ago.
The exemptions come as Trump pushes for reciprocal tariffs on nations that tax U.S. imports. According to a White House official, approximately 50 percent of Mexican imports and 38 percent of Canadian imports fall under the USMCA, making the temporary pause a significant shift in trade policy.
Conversations with Mexico and Canada
Trump revealed that he spoke with Mexican President Claudia Sheinbaum regarding the agreement, describing their working relationship as positive.
“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.”
Sheinbaum responded with gratitude, emphasizing continued collaboration between the two nations on trade, security, and immigration. “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,” she posted on X.
While Trump’s initial announcement did not specifically mention Canada, officials suggested that similar exemptions for the northern ally were expected. The president later took aim at outgoing Canadian Prime Minister Justin Trudeau, accusing him of leveraging the tariff issue as a campaign tactic ahead of the upcoming election.
“So much fun to watch!” Trump quipped on social media.
Stock Market Reaction and Trade Fallout
The announcement of tariffs earlier in the week sent shockwaves through the stock market, leading to a drop on Tuesday. However, following Trump’s decision to exempt auto imports under the USMCA on Wednesday, markets saw a modest rebound.
Commerce Secretary Howard Lutnick had previously hinted at a likely one-month delay for tariffs on USMCA goods, signaling that negotiations were in progress before Trump’s official announcement.
Despite the exemptions for Mexico and Canada, Trump’s tariff strategy continues to escalate on other fronts. The administration doubled existing tariffs on Chinese goods to 20 percent, prompting an aggressive response from Beijing.
China’s Response and Border Security
The Chinese embassy in Washington issued a fiery statement in response to the tariffs, warning of economic retaliation.
“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,” the statement read.
Trump has repeatedly linked tariffs to national security concerns, particularly in combating the flow of fentanyl into the U.S. China is the primary producer of fentanyl precursor chemicals, which are often shipped to Mexico before being trafficked across the U.S. border. According to Customs and Border Protection, 98 percent of fentanyl seizures occur along the southern border, with over 7,790 pounds seized since September.
Trump’s administration has positioned tariffs as part of a broader economic and security strategy, arguing that they serve to protect American industries while also addressing cross-border issues like drug trafficking and illegal immigration.
Retaliation and Future Trade Measures
In response to U.S. tariffs, Canada and China have already implemented retaliatory measures targeting American imports, while Mexico is weighing its options. Sheinbaum had been expected to announce Mexico’s next steps this Sunday, though Trump’s decision to pause tariffs may alter the course of those discussions.
For now, the reprieve lasts until April 2, a date Trump humorously referenced in his remarks before Congress. “I don’t want other countries to think my tariff policies are a prank if they started a day earlier on April Fools’ Day,” he joked.
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