President Donald Trump has agreed to postpone the planned 25% tariff increase on Canada and Mexico for 30 days, providing a temporary easing of trade tensions.

Following urgent negotiations, Canadian Prime Minister Justin Trudeau pledged to strengthen border security measures with the U.S. to curb migration flows and tackle fentanyl smuggling, a growing concern in the United States. Similarly, Mexican President Claudia Sheinbaum agreed to deploy additional forces to enhance security along the U.S.-Mexico border. In exchange, the U.S. has agreed to reduce the flow of firearms into Mexico.

Meanwhile, a separate 10% tariff on Chinese imports took effect after the Tuesday deadline passed, prompting swift retaliation from Beijing. In response, China imposed tariffs on a range of U.S. goods, including 15% tariffs on coal and liquefied natural gas and 10% tariffs on crude oil and agricultural machinery.

Trudeau and Sheinbaum Reach Border Security Agreements

On Monday, Trump and Trudeau reached a temporary agreement to suspend additional tariffs for 30 days, emphasizing the importance of securing the U.S.-Canada border. Trudeau confirmed that Canada would implement a $1.3 billion border security plan, including deploying nearly 10,000 additional border agents and introducing measures to curb fentanyl smuggling. He also announced the appointment of a “Fentanyl Czar” and the creation of a U.S.-Canada joint task force to combat related crimes.

Canada had already implemented some border security measures as early as December, strengthening cooperation with U.S. law enforcement agencies, improving data sharing, and enhancing surveillance with drones and Black Hawk helicopters.

In a separate agreement with Mexico, President Sheinbaum announced the deployment of 10,000 National Guard troops to secure Mexico’s southern border. She expressed satisfaction with the negotiations, highlighting the mutual respect for each country’s sovereignty.

Trump has used tariffs as a tool to boost the U.S. economy, protect jobs, and increase tax revenue. However, economists warn that reciprocal tariff escalations could raise costs on goods such as cars, steel, food, and alcoholic beverages.

The announcement to pause the tariff increases temporarily relieved market concerns, as previous tariff measures and fears of a broader trade war had fueled market volatility. However, lingering uncertainty remains a key concern.