After Mexico promised to increase border security, the U.S. and Mexico decided Monday to postpone a 25% duty on all Mexican imports for one month. This step might have slowed the economies of both countries and increased costs for U.S. consumers, at least for the time being.
In order to combat drug trafficking from Mexico into the United States, especially fentanyl, Mexican President Claudia Sheinbaum said on social media that her country will immediately bolster the northern border with 10,000 soldiers of its National Guard.
The U.S. will resume border security talks with Mexico, led by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick, Trump stated in a social media post.
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Following Trump’s signing of an executive order on Saturday to impose a 25% tariff on almost all goods entering the United States from Canada and Mexico beginning on Tuesday, the action was taken. Additionally, Trump imposed a 10% tariff on all Chinese imports and took action to eliminate a loophole that permits Chinese e-commerce firms, such as Temu and Shein, to send shipments under $800 into the United States duty-free in order to avoid duties.
Canada responded to the action with retaliatory duties, and Mexico had promised to follow suit. China stated that it will contest the levies in the World Trade Organization and respond with unidentified countermeasures.
The tariff announcement over the weekend caused stocks to drop Monday morning, but they somewhat recovered after the agreement with Mexico. Economists and industry associations had cautioned that the tariffs may increase costs in the United States and cause an economic slowdown because Mexico is the country from which the United States imports the most commodities. Trump also threatened to impose tariffs on Mexico during his first term, but he backed off less than two weeks later when Mexico announced plans to use its national guard across the nation to crack down on immigration and expand a program where some migrants seeking asylum in the US would wait in Mexico for their immigration court hearings.
On social media, Trump also announced that he had a conversation with Canadian Prime Minister Justin Trudeau on Monday morning and will have another conversation with him later in the afternoon. In remarks Tuesday afternoon, Trump claimed that Canada had unfairly treated the United States and appeared to downplay the importance of trade with the country.
“They are not required to produce our automobiles. We don’t require lumber from them. Trump told reporters, “We have all the agriculture we need, so we don’t need them for agricultural products.”
In response, Trudeau said Saturday evening that Canada would impose a 25% tariff of its own on $155 billion worth of U.S. goods. As of Tuesday, the day the United States announced it will start collecting tariffs on Canadian imports, that would entail immediate tariffs on $30 billion worth of items.
In order to give Canadian businesses and supply chains time to look for alternatives, Trudeau stated that the remaining tariffs would be implemented in around three weeks. Trump and administration officials have sent conflicting messages since the announcement on Saturday regarding the purpose of the tariffs and the necessary actions to have them removed.
In the presidential order imposing the tariffs, the White House said that the action was a reaction to the influx of immigration and fentanyl from Canada and Mexico, which Trump was claiming was a national emergency. In a national emergency, the president can control trade under the International Emergency Economic Powers Act.
According to U.S. Customs and Border Protection data, in 2024, U.S. law enforcement confiscated 21,900 pounds of fentanyl, almost all of which were at the southern border, while only 43 pounds were at the northern frontier.
However, Trump appeared to go against that logic in a number of social media tweets over the weekend, urging businesses to produce their goods in the United States and pointing to a trade deficit with the three nations. Trump claimed in a different post that the tariffs would force Canada to join the United States.
We give SUBSIDIZE Canada hundreds of billions of dollars. Why? There’s no explanation. Nothing they have is necessary for us. We should build our own cars, have more lumber than we can ever use, and have limitless energy. Canada is no longer a viable nation without this enormous subsidy. It’s harsh, but accurate! Canada ought to become our beloved 51st state as a result. The Canadian people will benefit from significantly better military protection, far reduced taxes, and no tariffs! Trump stated on Truth Social.
In an appearance on cable news this morning, administration representatives reaffirmed that the action was related to immigration and drugs and charged that Canada had misunderstood the purpose of the tariffs.
“This is about fentanyl, not a trade war with Canada, Mexico, or China,” stated Interior Secretary Douglas Burgum on Fox News. “We ve had a mass invasion of our country.”
Sheinbaum of Mexico said she spoke with Trump over the phone Monday morning and they came to an arrangement on the tariff postponement. She claimed that during the discussion, she also urged American officials to take more action to halt the importation of powerful firearms into Mexico, which she claimed are being used by criminal organizations in Mexico.
Sheinbaum claimed that when Trump asked her how long the tariffs should be suspended, she first replied indefinitely.
She claimed that after some back and forth, Trump accepted her suggestion for a one-month halt.
“I am sure that in this month we will be able to give results,” she stated.