The tariffs are being pushed back one month.
Following President Donald Trump’s announcement of a 25% tariff on imports from Canada and Mexico, he agreed to delay the tariffs for one month after both countries introduced measures to strengthen their border security. This temporary pause prevented tariffs that could have led to higher consumer prices and negatively impacted the economies of both nations.
On January 29, Canadian Prime Minister Justin Trudeau announced that Canada would invest $1.3 billion to enhance its border security. This includes adding helicopters, new technology, and personnel, along with resources to combat the flow of fentanyl. In response, Trump highlighted the need to curb fentanyl trafficking and stated that the tariffs would be paused for 30 days to evaluate whether an economic deal with Canada could be reached.
Meanwhile, Mexican President Claudia Sheinbaum announced plans to reinforce Mexico’s northern border with 10,000 members of the national guard to address drug trafficking, especially fentanyl. Trump confirmed that the U.S. would continue discussions with Mexico about border security, and key U.S. officials, including Secretary of State Marco Rubio, were tasked with leading the negotiations.
The initial announcement of the tariffs had raised concerns that they would trigger a trade war and increase costs for U.S. consumers on goods such as cars, produce, and gasoline. The delay, resulting from the border security measures by Canada and Mexico, was seen as a reprieve, though it is unclear what lasting impact the negotiations will have. Trump had previously threatened tariffs on Mexico during his first term, but those were reversed after Mexico agreed to bolster immigration control efforts.
