Trump Administration pauses new tariffs on Mexico and Canada amid rising trade tensions

In a significant shift from traditional free trade policies, U.S. President Donald Trump announced a new tariff policy imposing increased import duties on trading partners that tax American imports. This shift, which the President announced on his very first few days in the office was aimed at ensuring ‘fairness’ in international trade,  will see the U.S. automatically matching tariffs imposed by other countries. 

The policy, as soon as it was announced escalated global trade tensions, as countries struck back with retaliatory tariffs, which many expected would largely impact American exports and industries that are heavily dependent on the market in the long run. Although the new tariffs were among other significant policy shifts by the Trump administration, it appears that tensions have already risen as the policy change has already done a complete U-turn just weeks after the administration announced it.

In new key developments, on the 6th of March 2025, President Donald Trump’s administration announced the decision to pause the newly implemented tariffs on several imports from both Mexico and Canada. Although this pause is set to only last for a month so far, the administration is seen taking a complete U-turn from the 25 percent tariffs on all imports that were implemented from both countries. 

The tariffs, which were set to kick in a month after Trump first announced the new rules have now been postponed for another month following negotiations with the President of Mexico and the Prime Minister of Canada. Although the new tariff pause for both Mexico and Canada is extended until April 2, 2025, Trump has also threatened to impose reciprocal tariffs on all US trading partners, with countries warned to expect the same tariff rates that it subjects US goods to.

With this announcement, Canada has also put a halt on the second wave of its reciprocal tariffs on US goods until April 2nd.