President Trump announced last Thursday that he has decided to postpone imposing a 25% tariff on most goods from Mexico, providing a temporary relief amid the growing concerns over a potential wider trade conflict. This announcement followed Commerce Secretary Howard Lutnick’s remarks to the media suggesting that tariffs targeting both Canada and Mexico might be deferred. However, no updates were issued regarding existing tariffs imposed on Canada—another key trade partner of the United States.
This marks the second occasion Trump has delayed the enforcement of these tariffs since their initial revelation in early February. The postponement applies specifically to goods from Mexico that fall under the guidelines of the trade agreement brokered previously among the United States, Canada, and Mexico. This agreement, a centerpiece of Trump’s first-term negotiations, effectively covers the bulk of imports from Mexico.
“After discussions with President Claudia Sheinbaum of Mexico, I’ve agreed that Mexico shall not be subjected to tariffs on goods compliant under the USMCA Agreement,” Trump declared on Truth Social. “The decision was made out of respect for President Sheinbaum. Our partnership is strong, and we are working diligently on the border situation together.” The specifics behind why tariffs on Mexico were temporarily lifted—while those on Canada remain active—were not disclosed in the announcement.
Canadian Prime Minister Justin Trudeau remarked on Lutnick’s statements, describing them as a “promising sign” but pointing out that tariffs remain, which means Canada will persist with its current countermeasures. He further noted the likelihood of an extended trade conflict with the U.S., given the prevailing circumstances.
Trump’s unpredictable tariff strategies have caused significant disruptions in financial markets, reduced consumer confidence, and left many businesses in a state of uncertainty that could hinder hiring and investment plans. Lutnick affirmed that the U.S. will still enforce reciprocal tariffs starting April 2, impacting countries imposing tariffs on U.S. exports. U.S. stock markets temporarily lifted following Lutnick’s comments, yet losses continued shortly after, with the S&P 500 dipping below its level before Trump’s presidency.
In a social media post on X—formerly known as Twitter—President Sheinbaum highlighted an “excellent and respectful” conversation with Trump, expressing that their collaborative efforts are yielding significant outcomes. In recent weeks, Mexico has intensified actions against cartels, deploying troops to the U.S. border and extraditing 29 key cartel figures as sought by the U.S.
During a press conference, Sheinbaum expanded upon her dialogue with Trump, reiterating Mexico’s dedication to fulfilling his security requirements. “I conveyed that Mexico is delivering results,” she mentioned, while questioning Trump’s approach given the tariffs’ detrimental impact on Mexicans. She stated that most U.S.-Mexico trade will remain tariff-free until April 2, and maintained that both nations will keep collaborating on migration, security, and the reduction of fentanyl trafficking. According to U.S. Customs and Border Protection data, between January and February, there was over a 41% decrease in fentanyl seizures at the border, fulfilling a vow made to Trump.
In response to Trump’s tariff strategies, Ontario Premier Doug Ford announced that beginning Monday, Ontario will charge 25% more for electricity delivered to 1.5 million American customers. Ontario supplies power to Minnesota, New York, and Michigan. “President Trump’s actions are chaotic,” Ford criticized, noting that despite this temporary relief, Trump’s threats of tariffs still pose a challenge. Ford’s administration confirmed the tariff would remain unless the tariff threat ceases.
Sheinbaum noted Trump’s commitment to address the trafficking of American firearms into Mexico, which has fueled cartel violence, although Trump has not expanded on actions taken to tackle the issue. Despite these tensions, Sheinbaum has managed the Mexico-U.S. relationship adeptly, emphasizing Mexican sovereignty—a move that has bolstered her approval ratings. In contrast, Trump’s interactions with Canadian Prime Minister Trudeau continue to face challenges, while Sheinbaum has maintained a pragmatic yet cordial relationship with the American president.
Lutnick acknowledged that both Canada and Mexico have been effective in combating fentanyl traffic at the border—an important factor in permanently ending the tariffs. Trump, however, has cited multiple reasons for the tariffs, including generating revenue, initiating a return to domestic manufacturing, and addressing trade imbalances. Lutnick indicated his focus will be on U.S. fentanyl overdose rates as a metric to evaluate Canada and Mexico’s actions against the synthetic drug.
During his Congressional address, Trump emphasized tariffs as a means of amplifying American wealth and influence, despite opposition from most economists who argue that tariffs could escalate prices, slow economic growth, and result in job losses. Research from the Yale University Budget Lab predicts that these tariffs on Canada, China, and Mexico could drive inflation up by a percentage point, reduce growth by half a percentage, and cost the average family $1,600 in disposable income. Addressing potential concerns, Trump concluded, “There’ll be slight disruptions, but we’re prepared. The impact won’t be substantial.”
