Trump, again, walks back tariffs in trade war with Canada and Mexico

By: Ariana Figueroa, D.C. Bureau

WASHINGTON — President Donald Trump Thursday signed an executive order to delay for a month broad tariffs he levied on Canada and Mexico earlier in the week.

The tariffs sent Wall Street stocks tumbling and heightened fears of an economic fallout.

During the signing at the White House, Trump said most of the 25% tariffs on Mexico and Canada he placed beginning Tuesday would be delayed until April 2. Trump had also placed an additional 10% tariff on China.

“And then we have some temporary ones and small ones, relatively small, although it’s a lot of money having to do with Mexico and Canada,” Trump said.

It’s the second time in his brief tenure in office the president has postponed tariffs he placed, blaming Canada and Mexico for fentanyl trafficking. China still has 20% tariffs.

Canada’s Prime Minister Justin Trudeau had announced retaliatory tariffs Wednesday and Mexico’s President Claudia Sheinbaum planned to announce retaliatory measures on Sunday. The Chinese embassy in the United States wrote on social media that China was prepared to fight back.

“If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end,” the embassy  wrote.

Trump said after talking with Sheinbaum earlier Thursday, he decided on the delay on tariffs against Mexico.

“We had a very good conversation,” Trump said of the call with Mexico’s president. “Also, we discussed drugs, and they’re working much harder.”

The one-month delay includes some products covered by Mexico and Canada under the United States-Mexico-Canada Agreement. Tariffs are essentially taxes on foreign goods that are paid by those importing the goods.

On Monday, Trump had said there would be “no room left for Mexico or Canada” to negotiate on the 25% tariffs he placed.

Fentanyl smuggling cited

During his joint address Tuesday to Congress, Trump said tariffs were needed because of fentanyl smuggling.

“Tariffs are not just about protecting American jobs, they’re about protecting the soul of our country,” Trump said. “Tariffs are about making America rich again and making America great again. And it’s happening, and it will happen rather quickly. There will be a little disturbance, but we’re okay with that.”

Of the fentanyl seized by border officials in fiscal year 2024, roughly 0.2% – or 43 pounds – came from the Canadian border, according to U.S. Customs and Border Protection data. Compared with Mexico, about 96.6% of fentanyl was seized at the southern border.

Canada reaction

Trudeau said in a Wednesday statement that the tariffs were an “unjustified decision.” He also stressed the need for Canada to focus on trading within the country and not rely heavily on being a trading partner with the U.S.

“We must increase our economic resilience, reduce dependence on one market, and strengthen our domestic economy for the benefit of Canadian workers and businesses now and in the future,” he said.

Trump, and high-placed White House officials, have publicly joked about annexing Canada — a democratic nation — and referred to the country as the 51st U.S. state.

After the tariffs were announced Tuesday, Trudeau speculated that Trump “wants to see a total collapse of the Canadian economy because that’ll make it easier to annex us.”