President Trump agrees to delay Mexico, Canada tariffs on imports covered in trade deal

President Donald Trump took executive actions on Thursday postponing for one month new tariffs on imports from Canada and Mexico that fall under the United States-Mexico-Canada Agreement on trade.

It's the latest backpedaling in a trade war that Trump ignited earlier this week when he imposed steep 25% tariffs on all goods imported from the two neighboring countries.

The tariffs on imports covered in the USMCA are on hold until April 2, when Trump's reciprocal tariffs on goods from all nations that place fees on U.S. exports are set to go into effect.

About 38% of U.S. imports from Canada fall under the USMCA ‒ a free trade deal Trump signed in 2019 ‒ meaning about 62% of goods from Canada will still be subject to tariffs, the Trump White House said. About 50% of imports from Mexico fall under the agreement, so about half of Mexican imports will be subject to the tariffs.

Trump signed an executive order postponing the tariffs in front of reporters in the Oval Office.

In a post on social media earlier in the day, Trump said he agreed to the one-month suspension for Mexico after speaking with Mexican President Claudia Sheinbaum. "Our relationship has been very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl," Trump said in a statement.

The moves come after Trump on Wednesday agreed to exempt automobiles from newly imposed 25% tariffs on imports from Canada and Mexico for the next month at the request of the three largest U.S. automakers. The steep tariffs on two of the U.S.'s biggest trade partners sent the stock market tumbling while stoking anxiety for consumers about higher costs.

Sheinbaum thanked Trump in a statement, saying they had an "excellent and respectful call" and agreed to continue to work together to reduce the entry of fentanyl into the U.S. and weapons into Mexico. "As mentioned by President Trump, Mexico will not be required to pay tariffs on all those products within the USMCA," she said.

Trump sharpens attacks on Canada's Trudeau

Despite the reprieve for Canada, Trump on Thursday escalated his attacks against Canadian Prime Minister Justin Trudeau, who he has repeatedly needled by referring to him as "governor of Canada."

"Believe it or not, despite the terrible job he’s done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister," Trump said in a post Thursday on Truth Social. "So much fun to watch!"

Trudeau responded to the new tariffs Tuesday by announcing retaliatory 25% Canadian tariffs on American goods. He called Trump's tariffs "a very dumb thing to do" in defiant remarks. "Canadians are reasonable and we are polite, but we will not back down from a fight," Trudeau said.

Treasury Secretary Scott Bessent, in remarks Thursday at The Economic Club of New York, said Trump is open to negotiating tariffs but not "if you want to be a numbskull like Justin Trudeau and say, 'Oh, we're going to do this.'"