 "How did Mexico and Canada convince US President Trump to pause tariffs for 30 days?")
Donald Trump is described by many as being chaotic. And the chaos was evident when the US president signed an executive order, implementing 25 per cent tariffs on America’s neighbours — Mexico and Canada — and 10 per cent tariffs on goods from China.
These tariffs were expected to come into effect on Tuesday (February 4), but Trump being Trump, it was announced just hours before the tariffs were to come into effect that they were being paused for now for Canada and Mexico. The tariffs on China are still set to go ahead, though the White House said Trump is due to talk to President Xi Jinping.
How did this roundabout happen? And does this mean that Trump’s trade war in North America comes to an end?
A Mexican pause
It all began on Monday (February 3) when Mexican President Claudia Sheinbaum announced that the US had agreed to delay the start of tariffs on Mexican goods for one month after she held talks with her counterpart, Donald Trump.
“It was a good conversation, with respect,” she said. “It’s about collaboration, co-ordination, without losing sovereignty.”
On announcing the news, the press conference broke into applause, with some praising Sheinbaum for being able to avert this trade war.
Trump later confirmed the pause, posting on social media that he and Sheinbaum had had a “friendly conversation”.
He added that US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Secretary of State Marco Rubio would hold talks with high-level Mexican officials on trade and security. “I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a “deal” between our two countries,” Trump wrote.
Shortly after Trump announced the pause on the tariffs for the next 30 days, the Mexican peso reversed its earlier losses.
Canada catches a break with Trump
Shortly after Trump announced the 30-day pause on tariffs with Mexico, Canadian Prime Minister Justin Trudeau said that the US president had agreed to a similar pause on tariffs on imports from Canada for at least 30 days.
Trudeau wrote on X, “I just had a good call with President Trump.” In the same message, he added, “Proposed tariffs will be paused for at least 30 days while we work together.”
The pause comes amid strained ties between the two neighbours. Following Trump’s decision to implement the tariffs, Canadians cancelled trips south of the border, boycotted US alcohol and other products and even booed at sporting events.
Moreover, Canadian Prime Minister Justin Trudeau had also announced retaliatory tariffs on C$155 billion ($107 billion) of US goods. Those on C$30 billion would take effect on Tuesday, the same day as most of Trump’s tariffs, and duties on the remaining C$125 billion in 21 days, Trudeau said.
Brokering pause on US tariffs
But how did Mexico and Canada wrangle these pauses from an adamant Trump? One could say it was a whole lot of diplomacy that yielded these agreements on deferring the onset of the tariffs for 30 days.
In Mexico’s case, the Mexican government agreed to send 10,000 National Guard troops to its northern border while Trump vowed to stem the flow of American firearms into Mexico.
Speaking on the same, Trump said that 10,000 Mexican soldiers would be “specifically designated to stop the flow of fentanyl, and illegal migrants into our country”.
Earlier, the US president had accused Sheinbaum’s administration of engaging in an “intolerable alliance” with Mexican crime groups. The Mexican president had then rejected the “slanderous” accusation, but on Monday morning struck a more diplomatic note as she announced “a series of agreements” with Trump.
Meanwhile, Canada’s Trudeau also struck agreements with Trump in exchange for the tariff pause. He announced that his government would name a fentanyl czar, list Mexican cartels as terrorist groups and launch a “Canada-US Joint Strike Force to combat organised crime, fentanyl and money laundering.”
Trudeau said in a post on X, “Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border.”
“In addition, Canada is making new commitments to appoint a ‘Fentanyl Czar’, we will list cartels as terrorists, ensure 24/7 eyes on the border, and launch a Canada- US Joint Strike Force to combat organised crime, fentanyl and money laundering. I have also signed a new intelligence directive on organised crime and fentanyl and we will be backing it with $200 million,” wrote the Canadian PM.
Trump, in turn, wrote on his social media platform — Truth Social —“Canada has agreed to ensure we have a secure northern border, and to finally end the deadly scourge of drugs like fentanyl that have been pouring into our country, killing hundreds of thousands of Americans, while destroying their families and communities all across our country.”
“I am very pleased with this initial outcome, and the tariffs announced on Saturday will be paused for a 30-day period to see whether or not a final economic deal with Canada can be structured,” Trump wrote. “Fairness for all!”
Uncertainty lingers
But before one thinks that this is the end to Trump’s tariff wars, think again. The US president has only suspended the tariffs for 30 days and it is unknown what comes next.
However, for Trump’s administration, it’s a moment of celebration. US Vice President JD Vance said, “So for literally three days, I heard the far left in this country say that these tariffs would make Americans’ lives worse. And what actually happened is the Mexican government was so afraid of the tariffs that they actually are taking their border enforcement and their anti-cartel activity more seriously.
“That is not a pathway to making Americans worse off,” he added. “That’s a pathway to making Americans better off.”
Financial experts and Trump watchers also note that while many may call Trump’s tactics to be grandstanding and theatrics, others note that the tariff threats aren’t just hollow campaign rhetoric. As Heritage Foundation research fellow EJ Antoni told NBC News, “One thing that is different is that leaders need to realise that Trump is serious. If they just think it’s all bluster or campaign promises, nothing will really change, right? They have to know he is serious.”
“He (Trump) economically holds all the cards,” said Antoni. “He has now made clear this is serious and happening. You can either get on the train, get off the tracks or get run over.”
All said and done, one must note that this is merely a pause from Trump and doesn’t necessarily mean an end to the tariff war. However, there are larger signs that the US president may revive this threat with his neighbours in the future too. For instance, Trump has long railed against protectionist trade policies. Additionally, while Trump in his first term had advisers to check him, this time it seems that his inner circle isn’t interested in keeping him in check but to push him forth on his most radical actions.
With inputs from agencies
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