Trump backs off tariff threat with Canada and Mexico

By Doug Palmer, Megan Messerly, Victoria Guida | 02/04/2025 01:17 PM EST

Tariffs will be paused for 30 days. But a 10 percent levy on Chinese goods is still scheduled to go into effect.

Shipping containers are seen at the Port of Montreal.

Shipping containers are seen Monday at the Port of Montreal in Montreal, Canada. Andrej Ivanov/AFP via Getty Images

President Donald Trump reached agreements with Mexico and Canada on Monday that will delay his threatened tariffs for one month, pausing the drama that roiled global markets and panicked businesses across the country.

Trump confirmed the one-month delays in posts on Truth Social. He said he granted the delays after Mexico agreed to send 10,000 soldiers to the U.S.-Mexico border and Canada promised additional actions to address Trump’s concerns about fentanyl flowing south into the United States.

Both pauses came after Trump spoke with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau by phone, two days after he signed three executive orders imposing new 25 percent tariffs on Mexico and Canada and 10 percent tariffs on China.

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Levies on Chinese goods were still scheduled to go into effect at midnight Monday. Trump is expected to soon speak with Chinese President Xi Jinping.

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