Trump delays tariffs on Mexico. Lutnick says Canada may also get a delay, but talks continue

President Donald Trump on Thursday announced a nearly one-month tariff delay on all products from Mexico that are covered by the USMCA free trade treaty, a significant walkback of the administration’s signature economic plan that has rattled markets, businesses and consumers.

Commerce Secretary Howard Lutnick also said Thursday that Trump will likely announce later in the day a one-month delay on all Canadian tariffs. But negotiations were ongoing and it remained unclear whether a deal would ultimately be accomplished, a senior Canadian government source told CNN.

“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” Trump wrote on Truth Social Thursday, after a phone conversation with the Mexican president. He said the tariffs would be delayed until April 2. The USMCA is the United States-Mexico-Canada Agreement, negotiated by Trump during his first term, that makes the three North American countries a free trade zone.

“I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl,” Trump added. “Thank you to President Sheinbaum for your hard work and cooperation!”

Sheinbaum, in a post on X, thanked US President Donald Trump for a “respectful” discussion about the tariffs he imposed.

Sheinbaum said that “virtually all” of Mexico’s trade with the United States is included in the US-Mexico-Canada Agreement.

“Practically all the trade we have with the United States is within the Mexico, United States, Canada Agreement. There is a part that has to do with rules of origin, but everything is practically within the trade agreement,” Sheinbaum said at a news conference Thursday.

Canada deal remains up in the air

In an interview with CNBC earlier Thursday, Lutnick said tariffs on all treaty-compliant products from Canada, most of which were hit with a 25% tariff Tuesday, will probably be paused. Lutnick said they will go into effect on April 2 unless Mexico and Canada show significant progress in fighting what the Trump administration has called an epidemic of fentanyl crossing the border to the United States.

But a senior Canada government source said that although negotiations with the Trump administration are ongoing and they continue to have discussions, “there is no clarity on whether or not the tariffs will be lifted for Canada.”

Trump has frequently praised Sheinbaum, but he has sharply criticized Canadian Prime Minister Justin Trudeau, whom he accused of trying to capitalize politically on the tariff angst Canadians have felt. It remains unclear, however, what – if anything – that could mean for a pause on Canadian tariffs. It was notable that Trump announced a reprieve for Mexico but not Canada.

“Believe it or not, despite the terrible job he’s done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister,” Trump wrote in a Truth Social post. “So much fun to watch!”

Trudeau has been equally and publicly critical of Trump, and he said in a press conference Thursday that he expects Canada and the US to be in a trade war for the foreseeable future.

And Trudeau said that all his country’s retaliatory measures would remain in place unless the United States completely rolls back its tariffs, not just temporarily.

News of a pause “aligns with some of the conversations we have been having with administration officials,” Trudeau told reporters on Thursday. “But I am going to wait for an official agreement to talk about (a) Canadian response.”

“It’s promising, but I would highlight that it means the tariffs are still in place,” Trudeau continued. “And therefore, our response will remain in place.”

Ontario Premier Doug Ford told CNN’s Wolf Blitzer on Thursday his province is implementing a 25% tariff on electricity exports to 1.5 million Americans’ homes in Minnesota, Michigan and New York next week.

“It really bothers me we have to do this,” Ford said. “Let’s just drop these tariffs. Let’s renegotiate the USMCA deal that he created. It hasn’t changed since he was in office, and he said it was the greatest deal ever.”