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President Donald Trump announced on Thursday a one-month delay in imposing tariffs on all products from Mexico covered by the USMCA free trade treaty, a significant reversal of the administration's signature economic plan that has rattled markets, businesses and consumers.
Commerce Secretary Howard Lutnick also said Thursday that Trump would likely announce a one-month delay on all Canadian tariffs later in the day. But negotiations were ongoing and it remained unclear whether a deal would ultimately be reached, a senior Canadian government source told CNN.
"After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay tariffs on anything that falls under the USMCA Agreement ," Trump wrote on Social Truth on Thursday, following a phone call with the Mexican president.
He said the tariffs would be extended until April 2. USMCA is the United States-Mexico-Canada Agreement, negotiated by Trump during his first term, that makes the three North American countries a free trade area.
" I did this as an accommodation and out of respect for Speaker Sheinbaum. Our relationship has been very good and we are working very hard, together, at the border, both in terms of stopping illegal aliens from entering the United States and also stopping Fentanyl. Thank you Speaker Sheinbaum for your hard work and cooperation ," Trump added.
Sheinbaum, in a post on X, thanked US President Donald Trump for a "respectful" discussion about the tariffs he imposed.
She said that "virtually all" of Mexico's trade with the United States is included in the U.S.-Mexico-Canada Agreement.
" Virtually all of the trade we have with the United States is within the Mexico-United States-Canada agreement. There is some that has to do with rules of origin, but everything is practically within the trade agreement ," Sheinbaum said at a press conference on Thursday, CNN reports .
-Canada's deal remains up in the air
In an interview with CNBC earlier Thursday, Lutnick said the tariffs on all products under the treaty from Canada, most of which were hit with a 25% tariff on Tuesday, will likely be phased out. Lutnick said they will take effect on April 2 unless Mexico and Canada show significant progress in combating what the Trump administration has called an epidemic of fentanyl crossing the border into the United States.
But a senior Canadian government source said that although negotiations with the Trump administration are ongoing and they continue to have discussions, there is no clarity on whether or not the tariffs will be lifted for Canada.
Trump has often praised Sheinbaum, but he has sharply criticized Canadian Prime Minister Justin Trudeau, whom he accused of trying to politically exploit Canadians' tariff anxiety. It remains unclear, however, what - if anything - this might mean for a Canadian tariff pause. It was notable that Trump announced a break for Mexico, but not Canada.
" Believe it or not, despite the terrible job he has done for Canada, I think Justin Trudeau is using the tariff problem, which he largely caused, to run for prime minister again. Very nice to see ," Trump wrote in a Truth Social post, CNN reports .
Trudeau has been equally and publicly critical of Trump, and he said at a press conference on Thursday that he expects Canada and the U.S. to be in a trade war for the foreseeable future.
And Trudeau said all of his country's retaliatory measures will remain in place unless the United States completely removes its tariffs, not just temporarily.
"The news of a pause is consistent with some of the conversations we've had with administration officials. But I would wait for a formal agreement to talk about (a) Canadian response. It's promising, but I would emphasize that it means the tariffs are still in place. And therefore, our response will remain in place ," Trudeau told reporters on Thursday.
Ontario Premier Doug Ford told CNN's Wolf Blitzer on Thursday that Canada and the United States should renegotiate the USMCA instead of continuing the trade war between the two countries.
The tariff rollback itself is causing confusion. Trump has routinely threatened or briefly imposed tariffs only to announce delays or pauses, leaving Corporate America unclear about how to invest and whether to hire.
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