President Donald Trump has suspended the heavy tariffs on Mexico and Canada for 30 days following tense negotiations, granting both nations a temporary reprieve.
The delay follows agreements on stronger border enforcement and increased efforts to curb fentanyl trafficking, which Trump lauds as victories for his "America First" agenda. However, the situation remains volatile. Both Canada and Mexico also claim some political gains, and businesses on both sides of the border are uncertain about the long-term effects, potentially leading to delays in investments and a cautious approach to trade in North America.
Though Trump has postponed the planned tariffs, his strategic approach of leveraging the power of the US economy to extract concessions seems to be effective. During his first term, similar tariff strategies on steel and aluminium stirred controversy, but this new wave of tariffs, which would have targeted goods from not only Mexico and Canada but also China, poses a much larger risk to North American trade.
The impending decision after the 30-day pause leaves companies on edge, uncertain about whether the threat will become reality and if they’ll have to adjust their supply chains, investments, and hiring plans accordingly.