In a Thursday, Mar. 6 post on his social media platform Truth Social, Trump said he struck a deal with Mexican President Claudia Sheinbaum to delay tariffs on goods covered by the United States-Mexico-Canada Agreement (USMCA).
The pause will be in effect until Tuesday, Apr. 2.
"I did this as an accommodation, and out of respect for, President Sheinbaum," Trump posted. "Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl. Thank you to President Sheinbaum for your hard work and cooperation!"
Sheinbaum previously condemned Trump's tariffs and said she would announce Mexico's response to US trade actions on Sunday, Mar. 9. It's unclear if Mexico will impose counter-tariffs after the pause announcement.
On Wednesday, Mar. 5, Trump also temporarily delayed automobile tariffs on Canada and Mexico until April 2. The decision was requested by major US automakers.
Trump has claimed Mexico and Canada are responsible for illegal immigration and fentanyl trafficking in the US. The two nations' presidents have disputed those claims.
According to the Cato Institute, a right-wing think tank, about 80 percent of people caught with fentanyl at border crossings were US citizens from 2019 to 2024.
"Taxing American consumers who purchase products from or contain inputs from Mexico and Canada will be equally ineffective," the institute said. "We are dealing with a network of transnational criminal organizations that can reconfigure their bases of production and distribution of illegal drugs in an amoeba-like fashion. Tariffs will punish American consumers, damaging relations with neighboring countries and possibly destabilizing their governments."
The Mexican tariff pause comes as trade tensions escalate between the US and its longtime commerce partners. On Tuesday, Mar. 4, Trump imposed 25 percent tariffs on Canadian and Mexican goods while raising tariffs on Chinese imports to 20 percent.
A reversal appears to be happening. Commerce Secretary Howard Lutnick told CNBC that Canada and Mexico may only end up facing reciprocal tariffs.
Canada has also pushed back against Trump's fentanyl claims, with Prime Minister Justin Trudeau insisting the issue is being exaggerated.
"We will not suspend Canadian tariffs because the American made a change yesterday," said Trudeau. "As I said a number of times, we will not be backing down from our response tariffs until such a time as the unjustified American tariffs on Canadian goods are lifted."
Canada has implemented $155 billion in retaliatory tariffs on US goods, $30 billion of which instantly took effect. The immediate duties were put on products like motorcycles, clothing, shoes, appliances, alcohol, coffee, peanut butter, and orange juice.
The remaining $125 billion in tariffs will be placed on items such as electric vehicles, trucks, buses, certain fruits and vegetables, aerospace products, beef, pork, and dairy. Those tariffs will begin after a 21-day comment period.
Economists warn that the escalating trade disputes could disrupt supply chains and drive up prices for American consumers. Major retailers, including Best Buy and Target, have already signaled that Trump's tariffs could lead to higher costs on everyday goods.
Layoffs have also surged across the US in February, with 172,017 job cuts marking the highest monthly total since July 2020. Government agencies, retail, and tech companies saw the biggest losses as economic uncertainty, trade disputes, and budget cuts fueled widespread downsizing.
US companies have cut 221,812 jobs in 2025, marking a 33-percent increase from early 2024 and the worst start to a year since 2009.
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