The United States postpones tariffs on Mexico and Canada for one month

Flags of Mexico, the United States and Canada are displayed at a security booth at the Zaragoza-Ysleta border bridge in Ciudad Juarez, Mexico - REUTERS/ JOSE LUIS GONZALEZ

Margarita Arredondas

04 de febrero de 2025 (15:00 h.)

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In exchange, both countries will reinforce the border with the United States

After hours of tension affecting international markets, the United States agreed with Mexico and Canada to postpone the 25% increase in tariffs on products from both countries for one month.

As announced by Canadian Prime Minister Justin Trudeau, Trump agreed to suspend the tariffs for ‘at least 30 days’ after a phone call.

In exchange, Canada will invest heavily in border security, creating a ‘Canada-United States Joint Strike Force to combat organised crime, fentanyl and money laundering’ and joining the United States in including cartels on the list of terrorist groups, as Trudeau explained. ‘I also signed a new intelligence directive on organised crime and fentanyl, and we will back it up with 200 million dollars,’ he added.

Trump, for his part, confirmed on his Truth Social account that he had agreed to pause the implementation of tariffs on Canadian imports to see ‘whether or not a final economic agreement can be structured’ with the country.

File photo, President Donald Trump speaks at the United States Steel Granite City Works steel plant in Granite City, Illinois July 26, 2018 - AP/ JEFF ROBERSON

‘Canada has agreed to ensure that we have a secure northern border and to finally end the deadly scourge of drugs like fentanyl that have been coming into our country, killing hundreds of thousands of Americans and destroying their families and communities across our country,’ he said.

General Motors plant exporting vehicles to Canada and the United States as new tariffs are expected for major U.S. automakers with plants in Mexico, in Ramos Arizpe, Mexico January 29, 2025 - REUTERS/ DANIEL BECERRIL

On the other hand, Trump also suspended for a month the 25% tariffs announced against Mexico over the weekend after holding a ‘very friendly conversation’ with Mexican President Claudia Sheinbaum.

Sheinbaum confirmed the agreement through a brief message posted on social network X, in which she announced that she had committed to reinforcing the border with the United States with 10,000 members of the National Guard who will be in charge of preventing drug trafficking, particularly of fentanyl. As the Mexican president emphasised, it was a ‘good conversation with great respect for our relationship and sovereignty’.

Cars crossing into the United States from Canada at the border between the two countries in Surrey, British Columbia, Canada, February 3, 2025 - REUTERS/ CHRIS HELGREN

Regarding the Mexican agents who will be sent to the border between the two countries, Trump emphasised that ‘they will be specifically designated to stop the flow of fentanyl and illegal immigrants’.

The US president also announced that negotiations will be held led by Secretary of State Marco Rubio, Secretary of the Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, as well as high-level representatives from Mexico.

On Saturday, Trump issued an executive order imposing tariffs of 25% on almost all products entering the United States from Canada and Mexico. This measure could trigger a trade war with two of Washington's main trading partners, which could raise the prices of a variety of products for US consumers, including cars, fresh food, building materials and petrol.

The sign ‘Look Local Instead’ encourages shoppers to buy local at a Nova Scotia liquor store as staff begin removing all U.S.-made alcohol from their shelves on Monday in Halifax, Nova Scotia, Canada, February 3, 2025 - REUTERS/ INGRID BULMER

Trump also imposed a 10% tariff on all Chinese imports and took steps to close a legal loophole that allowed Chinese e-commerce companies, such as Temu and Shein, to avoid tariffs by sending packages worth less than 800 dollars to the United States tax-free. The new tariffs came into force on Tuesday, and shortly afterwards China responded by imposing its own tariffs on some US products.