MEXICO CITY — The United States, Mexico, and Canada have agreed to a 30-day grace period on proposed tariffs while both neighboring nations reinforce their borders with the U.S. The deal, announced Monday, delays the implementation of a 25% tariff on Mexican and Canadian imports and provides additional time for security measures to be enacted.
Mexican President Claudia Sheinbaum confirmed the agreement in a post on X (formerly Twitter), saying she and her team had a “good conversation” with U.S. President Donald Trump. As part of the deal, Mexico will deploy 10,000 National Guard members to its northern border to combat drug trafficking, particularly fentanyl. In return, the U.S. has committed to taking action against the flow of high-powered weapons into Mexico.
Canadian Prime Minister Justin Trudeau also confirmed Canada’s participation in the agreement, stating that his government will implement a $1.3 billion border security plan. The plan includes deploying nearly 10,000 frontline personnel, investing in new helicopters and surveillance technology, and enhancing coordination with U.S. authorities. Trudeau also announced new initiatives, including the appointment of a Fentanyl Czar, the classification of drug cartels as terrorist organizations, and the formation of a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl trafficking, and money laundering. Canada has pledged an additional $200 million to support these efforts.
“Proposed tariffs will be paused for at least 30 days while we work together,” Trudeau stated.
This agreement follows recent tensions over the planned tariffs, which were initially set to take effect on Tuesday. The delay allows Mexico and Canada to address border security concerns while avoiding immediate economic repercussions.
Meanwhile, tariffs on Chinese imports remain set to be imposed as scheduled. The stock market reacted to the uncertainty, with the Nasdaq dropping 1.86%, the Dow Jones Industrial Average falling by 1.1%, and the S&P 500 declining by 1.8% as of Monday morning.
The three nations will continue negotiations over the next month, with trade and security remaining at the forefront of discussions.
