US pauses planned tariffs on Canada, Mexico for 30 days
What's the story
United States President Donald Trump has announced a 30-day suspension of the proposed tariffs on Canada and Mexico.
The decision comes after both nations pledged to enhance border security and combat drug trafficking, addressing key concerns raised by the US.
"I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period," Trump stated.
Border plan
Canada commits $1.3B to curb fentanyl smuggling
Addressing the US's concerns, Canada has promised $1.3 billion for a detailed border plan to keep fentanyl from entering the US.
The plan involves buying new helicopters and technology, hiring more people, and better coordination with American partners.
Canadian Prime Minister Justin Trudeau confirmed the steps, emphasizing on stopping the flow of fentanyl into America.
Trudeau said Canada has made commitments "to appoint a Fentanyl Czar."
Security measures
Mexico deploys 10,000 soldiers to US-Mexico border
Mexico has also taken major steps to address the US's concerns by agreeing to deploy 10,000 soldiers along the US-Mexico border.
The vast bulk of fentanyl intercepted at US borders is from Mexico.
In 2024, US officials recovered more than 21,100 pounds of fentanyl on the Mexican border, compared to only approximately 43 pounds at the Canadian border.
Economic impact
Trade war fears ease but uncertainty remains
The tariff suspension has temporarily eased fears of a possible North American trade war, which analysts warned could impede economic growth and raise prices.
Meanwhile, a separate 10% tariff on Chinese imports still remains set to take effect soon, with Trump and Chinese President Xi Jinping expected to discuss in the coming days.
On Saturday, Trump said that he will put 25% tariffs on goods from Mexico and Canada, as well as 10% taxes on items imported from China.