US pauses tariffs on Canada, Mexico for 30 days
President Donald Trump on Feb. 3, 2025, delayed 25% tariffs on Canadian and Mexican goods after both countries made border security commitments.
President Donald Trump on Feb. 3, 2025, paused the tariffs he had ordered on imports from Canada and Mexico two days earlier. The pause came after separate calls with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.
The Feb. 1 orders
On Feb. 1, the White House said Trump would impose a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. Energy resources from Canada would face a lower 10% tariff.
The orders invoked the International Emergency Economic Powers Act. The White House said the flow of illegal immigrants and drugs, including fentanyl, constituted a national emergency.
Mexico
Trump said Sheinbaum agreed to immediately supply 10,000 Mexican soldiers at the border to stop the flow of fentanyl and illegal migrants. He said the anticipated tariffs would be paused for a month while Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick led negotiations with Mexican officials.
A Feb. 3 executive order said the 25% duty on Mexican goods would not take effect until 12:01 a.m. Eastern time on March 4, 2025. The order amended the Feb. 1 order by replacing the Feb. 4 start date with March 4.
Canada
Later that day, Trump said Canada would implement its C$1.3 billion border plan. He quoted Trudeau as saying Canada would reinforce the border with new helicopters, technology and personnel, and that nearly 10,000 front-line personnel would work on protecting it.
Trudeau also committed to appoint a fentanyl czar, list cartels as terrorists and launch a Canada-U.S. Joint Strike Force against organized crime, fentanyl and money laundering, backed by C$200 million, according to Trump's post and CBC News.
"Proposed tariffs will be paused for at least 30 days while we work together," Trudeau said in a social media post after a 45-minute call with Trump, his second of the day, CBC reported.
Trump called the agreement an "initial outcome" and said the tariffs would be paused for 30 days "to see whether or not a final Economic deal with Canada can be structured."
What it meant for carriers
The pause delayed the 25% duties on goods moving across both U.S. land borders to March 4. Trump's statements left open whether the tariffs would take effect after the 30-day window.