President Donald Trump announced Thursday that he is delaying a 25% tariff on most Mexican goods for another month after speaking with Mexico’s president. This marks the second time Trump has postponed the tariffs since first unveiling them in early February.
Trump took to Truth Social to explain the decision, emphasizing the ongoing collaboration between the U.S. and Mexico on border security. “We are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl,” he wrote.
More: Trump Reportedly Backtracking on Tariffs, But No Full Repeal
The delay comes amid growing uncertainty for businesses and financial markets. Earlier in the day, Commerce Secretary Howard Lutnick hinted at a likely delay, saying that tariffs on both Mexico and Canada would “likely” be postponed. However, he made it clear that reciprocal tariffs—where the U.S. imposes taxes on imports from countries that tariff American goods—are still set to go into effect on April 2.
Markets responded quickly to the news, bouncing back from their earlier lows. Businesses, however, remain caught in a cycle of uncertainty, with shifting tariff policies making it difficult to plan long-term hiring and investments.
Meanwhile, Canada is bracing for economic turbulence. Canadian Prime Minister Justin Trudeau signaled that he expects a prolonged trade standoff with the U.S., stating that the delay in tariffs “aligns with some of the conversations that we have been having with administration officials.”
Related: Rising Inflation and Tariff Threats Put Trump’s Economic Policy Under Fire
While Trudeau acknowledged the postponement as a “promising sign,” he also pointed out that “the tariffs remain in place and therefore our response will remain in place.” This suggests that Canada will continue to impose its own counter-tariffs in retaliation for U.S. import taxes.
Trump’s shifting stance on trade has kept global markets on edge, with businesses struggling to adapt to policies that change from month to month. While the latest delay offers temporary relief, uncertainty remains over whether Trump will follow through with the tariffs next month or push them back yet again.
For now, the U.S., Mexico, and Canada remain locked in a high-stakes trade battle—with no clear end in sight.
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