Trump tariffs paused: What to know
Trump's plan includes a 25% levy that would be placed on all goods from Canada and Mexico and a 10% tax on imports from China
Trump is 'not bluffing' about China tariffs, economics editor says
Breitbart economics and finance editor John Carney breaks down President Donald Trump's reason for threatening tariffs and dissects NPR's failed fact-check on 'The Bottom Line.'
President Donald Trump paused placing sweeping tariffs on major trading partners to give them time to negotiate economic deals aimed at securing U.S. borders and curbing the flow of drugs, like fentanyl, into the country.
The U.S. on Monday suspended its 25% levy on Mexican and Canadian imports for one month after both nations agreed to implement measures to support such objectives. The 10% tariff on Chinese imports has not been suspended.
Canadian Prime Minister Justin Trudeau – who also paused plans to impose a 25% retaliatory tariff on U.S. imports – said on X that Canada will implement a $1.3 billion border plan and appoint a fentanyl czar. Mexican President Claudia Sheinbaum agreed to supply 10,000 troops on the border separating the U.S. and Mexico.
Over the next month, negotiations headed by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, and high-level representatives of Mexico will take place, so both nations can create a final deal, Trump said in a post on Truth Social.
TRUMP'S PROPOSED TARIFFS COULD DRIVE UP FOOD PRICES, EXPERTS SAY
Trump also said on social media that he will work with Trudeau to see if they can also construct a "final economic deal" during the 30-day cooling-off period.
The White House said in a statement on Saturday that Trump is working "to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country."
These levies are sending a message "that the flow of contraband drugs like fentanyl to the United States, through illicit distribution networks, has created a national emergency, including a public health crisis," the White House said.
The Ministry of Commerce of China said in a statement that the "unilateral tariff hikes by the US seriously violate World Trade Organization rules" and that the U.S. needs to solve this problem rationally.
President Donald Trump delivers his inaugural address after being sworn in as the 47th president in the Rotunda of the U.S. Capitol on Jan. 20, 2025, in Washington, D.C. (Chip Somodevilla/Pool/AFP via Getty Images / Getty Images)
"The U.S. needs to view and solve its own fentanyl issue in an objective and rational way instead of threatening other countries with arbitrary tariff hikes. Additional tariffs are not constructive and bound to affect and harm the counternarcotics cooperation between the two sides in the future," a spokesperson for the ministry said.
Shortly after his restoration to power, Trump signed an executive order titled "America First Trade Policy" which instructed government officials to "investigate the causes of our country’s large and persistent annual trade deficits in goods, as well as the economic and national security implications," the order said.
However, his recent actions against China are far lower than his initial threats he made during his campaign. Trump pledged a universal 10% to 20% tariff on imports from all foreign countries, along with an additional 60% to 100% tariff specifically on imports from China, which he blames for helping fuel the fentanyl crisis.
TRUMP'S TARIFFS WOULD DRIVE UP CONSUMER PRICES: NATIONAL RETAIL FEDERATION
Democrats and opponents argue that the cost of the tariffs would just be passed on to American consumers. Over the past several months, several retailers have raised concerns about the prospect of tariffs pumping up the costs of their products or even forcing them to cut back on inventory.
Oracle founder Larry Ellison listens to President Donald Trump speak in the Roosevelt Room at the White House on Jan. 21, 2025, in Washington, D.C. (Jim Watson/AFP via Getty Images / Getty Images)
For instance, Dollar Tree – which has high exposure to China – warned that if tariffs are implemented, the company might have to change product details or sizes and even stop carring items altogether if they become too expensive.
A Walmart spokesperson said in a statement to FOX Business that the company remains "concerned that significantly increased tariffs could lead to increased costs for our customers at a time when they are still feeling the remnants of inflation."
Meanwhile, Wall Street titan Goldman Sachs also raised concerns that hiking the levies on products will drive up costs for everyday Americans.
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David French, the National Retail Federation's executive vice president of government relations, said the United States "needs a review of our trade relationships to be sure that those relationships are structured to achieve fair, balanced and effective outcomes for American workers and businesses."
"Tariffs are taxes paid by Americans, and any new tariff tax increases should be methodically and effectively deployed toward only the most strategic goods," French said. "Undertaking a strategic assessment of trade priorities is an important first step."
FOX News' Greg Norman and Reuters contributed to this report.