President Trump has agreed to temporarily halt tariffs on both Canada and Mexico following discussions with their leaders. Mexican President Claudia Sheinbaum confirmed that planned tariffs on Mexico would be on hold for a month after agreeing to send 10,000 national guard troops to the border to combat drug trafficking, particularly fentanyl. In response, Canada’s Prime Minister Trudeau committed additional resources to border security and fighting fentanyl trafficking to avoid retaliatory tariffs, which have also been paused for 30 days.

Trump described the conversations with both leaders as positive, emphasizing the commitment to border security. Negotiations with Mexico will be led by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick. Mexico’s warnings about the potential impact of a tariff war highlight the interconnectedness of the economies, with Mexico being a major provider of cars, car parts, electronics, and appliances to the U.S.

The decision to pause tariffs reflects a temporary de-escalation in trade tensions, with Trump expressing optimism about reaching a mutually beneficial agreement through ongoing negotiations. The involvement of key officials from both countries signals a diplomatic effort to address concerns and find common ground. The outcome of these discussions will have significant implications for trade relations between the U.S., Canada, and Mexico, as well as for industries relying on cross-border supply chains.