Trump’s latest tariff twist: a break for Mexico and Canada

Two days after putting 25% tariffs on goods from Mexico and Canada, President Trump said on Thursday that he will largely lift them — the latest twist in his on-again, off-again approach to an issue that has sent markets into a tailspin.

Trump started to tap the brakes on the tariffs on Wednesday, after talking to the Big 3 U.S. automakers. And then after a conversation with Mexican President Claudia Sheinbaum on Thursday, he said on social media that he would give a break to all Mexican goods covered by the U.S-Mexico-Canada Agreement (USMCA).

“I did this as an accommodation, and out of respect for, President Sheinbaum,” Trump said in his post, thanking Sheinbaum for her work addressing migration and fentanyl trafficking.

A few hours later, he signed executive orders that included relief for Canadian goods covered by the USMCA.

The break lasts until April 2 — or maybe longer

The reprieve will last until at least April 2, when Trump plans to begin “reciprocal tariffs” on goods from a wider range of countries.

The rates, products and countries affected by the upcoming reciprocal tariffs are still to be determined.

Canada and Mexico may avert the 25% tariffs beyond April 2, if they show they have made more progress curbing fentanyl trafficking, a senior administration official told reporters on a conference call ahead of the signing, speaking on condition of anonymity.

Canada's Prime Minister Justin Trudeau speaks during a news conference about the U.S. tariffs on March 4, 2025 on Parliament Hill in Ottawa.
Canada’s Prime Minister Justin Trudeau speaks during a news conference about the U.S. tariffs on March 4, 2025 on Parliament Hill in Ottawa. (Dave Chan | AFP)

Trump originally planned to start the tariffs on Feb. 1 to push the U.S. neighbors to do more stop migration and drug trafficking — but then delayed them by a month.

Then last week, he told reporters he was looking at April 2 as a start date for the tariffs — before reversing and putting them in place on March 4.

Mexico made its case with charts

Canada and Mexico beefed up border enforcement to try to avoid the tariffs. Prime Minister Justin Trudeau spoke to Trump on Wednesday evening in a call he described as “colorful,” telling reporters afterward that Canada should expect to be in a trade war with the United States for the foreseeable future.

Sheinbaum described her phone call with Trump as “respectful.” She said she walked Trump through a set of his own government’s statistics showing a huge drop in the amount of fentanyl being seized by border authorities.

“I asked him, ‘How can we continue to collaborate if the U.S. is doing something that hurts the Mexican people?'” Sheinbaum told reporters. She explained that it wasn’t a threat. “I just asked him to understand my position,” she said.

Sheinbaum had been set to announce retaliatory measures at a mass rally on Sunday. Now, she said it will be a celebration.

 

Trump administration rushes to rent space for immigration officers conducting raids

Employees at the General Services Administration are scrambling to lease offices to accommodate a rapid increase of immigration enforcement officers carrying out widespread raids across the country.

Bad Bunny skipped touring the states. Will other performers follow suit?

Artists from abroad are worried that the current climate is making American tours not worth the time and effort.

Trump suggests U.S. troops could return to Afghan base over China concerns

Trump floated the idea during a press conference with British Prime Minister Keir Starmer as he wrapped up a state visit to the U.K. and tied it to the need for the U.S. to counter its top rival, China.

CDC’s new advisers debate changing guidance on childhood vaccines

The group was chosen by Health Secretary Robert F. Kennedy Jr. amid controversy over their credentials. It's considering making changes to the MMRV vaccine guidance among others.

For a girl-group veteran, love and fame are the same battlefield

Jade conquered the world with Little Mix, then watched the quartet burn out. On a kinetic solo debut, she puts romance in the ring with her first love: performance.

Trump says he disagrees with Starmer’s decision to recognize Palestinian state

President Trump and British Prime Minister Keir Starmer talked about foreign affairs privately for about an hour, including the conflicts in Gaza and Ukraine.

More Economy Coverage