President Donald Trump and Canadian Prime Minister Justin Trudeau announced Monday that Washington will delay imposing 25% tariffs on Canadian imports for at least 30 days, offering a temporary reprieve from a major trade clash. Hours earlier, Trump had similarly paused tariffs on Mexican goods for one month, after President Claudia Sheinbaum pledged to deploy 10,000 National Guard troops to her country's northern border.

Trudeau first revealed the Canada deal in a social media post, saying, "Proposed tariffs will be paused for at least 30 days while we work together." Trump confirmed the move soon after via Truth Social. "Canada has agreed to ensure we have a secure Northern Border, and to finally end the deadly scourge of drugs like Fentanyl that have been pouring into our Country," Trump stated. "I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured. FAIRNESS FOR ALL!"

The White House says the administration will use the coming weeks to negotiate with Canadian officials over drug enforcement and border security. Trudeau outlined plans to appoint a "Fentanyl Czar" and called for a "Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering."

Monday's developments come after Trump on Saturday signed executive orders imposing 25% tariffs on imports from Canada and Mexico, along with a 10% levy on Canadian oil, natural gas, and electricity. He also approved 10% tariffs on Chinese goods, set to take effect Tuesday.

Both Canada and Mexico threatened immediate retaliation. By Sunday, Mexican President Claudia Sheinbaum agreed to deploy more troops to stem the flow of drugs. Trudeau, however, appeared less certain of avoiding the looming tariffs. "I just had a good call with President Trump," he wrote Monday, signaling Canada's concessions on fentanyl smuggling had won a crucial delay.

Trump has repeatedly warned that additional taxes on imports from China may follow if talks with Chinese President Xi Jinping do not produce what he views as a "fair" accord. "If we can't make a deal with China, then the tariffs will be very, very substantial," Trump told reporters.

Key Tariff Details:

  • Canada and Mexico: 25% on general imports; 10% on Canadian energy exports.
  • China: 10% on imports.
  • Effective Date: Initially set for midnight Tuesday, now paused 30 days for Canada, 1 month for Mexico.

The abrupt pause has calmed market fears of a broader trade war, but the risk remains if the 30-day window closes without agreement. Kevin Hassett, director of the White House National Economic Council, pushed back on media depictions of a trade confrontation. "Read the executive order where President Trump was absolutely, 100% clear that this is not a trade war," Hassett said. "This is a drug war."

Still, Trump has shared other justifications for tariffs, including what he calls "unfair" trade surpluses held by Canada and other countries. "Canada doesn't even allow U.S. Banks to open or do business there," he charged in a Monday post on social media. He mused about absorbing Canada as "the 51st state," though he offered no specific plan for such a move.

President Trump and Mexican President Claudia Sheinbaum will work with Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and Commerce Secretary nominee Howard Lutnick on border measures that could avert future escalations. Sheinbaum said Mexico's newly deployed troops aim to stop "the trafficking of high-powered weapons to Mexico" as well as illegal fentanyl entering the United States.