Trump Announces One-Month Pause on Mexico, Canada Tariffs After Border Agreement

What Happened?

President Donald Trump has announced a one-month pause on a new 25% tariff on Mexico and Canada after the countries agreed to cooperate with various requests.

The move comes just two days after Trump imposed the tariffs measure to begin Saturday on Canada and Mexico with a 10% duty on China.

Mexican President Claudia Sheinbaum said in a statement Monday morning that she and President Trump had a good conversation with great respect for one another and each other's sovereignty.

The two were able to reach a series of agreements that included immediately reinforcing the northern border with 10,000 members of the National Guard to prevent drug trafficking from Mexico to the U.S.

U.S. officials are also committing to help prevent the trafficking of high-powered weapons to Mexico.

President Sheinbaum added, 'Our teams will begin working today on two fronts: security and trade. They are pausing tariffs for one month from now.'

Canadian Prime Minister Justin Trudeau announced Monday that proposed tariffs between Canada and the U.S. will be 'paused for at least 30 days while we work together.'

In a social media statement, Trudeau said:

'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.'

Trudeau added that nearly 10,000 frontline personnel will also be working on protecting the border through a 'Canada-U.S. Strike Force' and appoint a 'Fentanyl Czar.'

Previously, the prime minister announced Saturday that Canada would impose 25% tariffs on more than $100 billion of U.S. goods as a response.

Canada had also released a list of 1,256 items in the first portion of tariffs that were set to be effective Tuesday.

Why it Matters

Similar to Colombia, the Trump administration had walked back its tariff threats after the country reversed course to accept deported migrants being returned on military planes.

Trump has stayed consistent with his campaign promise to address large scales of undocumented migrants and drugs that have flooded into the U.S.

He claims that America’s closest neighbors and largest trading partners have contributed to this issue.

'They've got to stop people from pouring into our country,' Trump told reporters over the weekend. 'And we have to stop fentanyl. And that includes China.'

The president added that Canada and Mexico 'have to balance out their trade, number one,' to lift the 25% tariffs long-term.

Many have expressed concern over the impact these moves could have on American consumers.

But Trump acknowledged there may be some short-term pain, 'but long term, the United States has been ripped off by virtually every country in the world.'

The White House looks to review its existing trade agreements to evaluate its current trade leverage worldwide.

Subsidies given to Canada and Mexico in the form of deficits are often points that Trump has made that influenced his decision.

How it Affects You

The current United States–Mexico–Canada Agreement is up for review on July 1, 2026.

The potential trading relationships with two of the nation's biggest allies still hang in the balance.

Reports have suggested that a trade war with Canada would likely cause a 'shallow' recession in the U.S.

Consumer prices are key focuses that Americans are hoping are eased in the months to come without straining key relationships.