On the eve of their scheduled implementation, the United States postponed a 25% tariff increase on imports from Mexico and Canada. The decision followed discussions between President Donald Trump, Mexican President Claudia Sheinbaum, and Canadian Prime Minister Justin Trudeau. The delay, set for one month, aims to allow further negotiations between the involved countries. Meanwhile, a separate 10% tariff on Chinese goods, imposed by an executive order over the weekend, took effect as planned.
Canada had prepared to respond immediately with retaliatory tariffs of the same rate, affecting $30 billion worth of American exports, including poultry. Additional countermeasures were under consideration, targeting products such as pork and beef. Mexico was also expected to take similar action, particularly focusing on U.S. pork exports, which reached a record high of $2.55 billion in the previous year.
As part of the discussions, Canada committed to strengthening its northern border security, implementing a plan valued at over $900 million. This initiative aligned with a previous announcement made by Trudeau in December. The agreement with Mexico involved a temporary suspension of the expected tariffs for one month to facilitate diplomatic efforts. In response, Sheinbaum pledged to deploy 10,000 Mexican troops to enhance border security and address concerns related to illegal migration and drug trafficking.
These trade tensions have persisted despite the United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA following negotiations led by Trump during his first term. The USMCA remains in effect and is scheduled for renewal in 2026.
