Mexico and Canada will not have to pay the 25% tariffs on goods that fall under the United States – Mexico – Canada (USMCA) trade agreements until April 2. At that time, the administration plans to move ahead with reciprocal tariffs. The U.S. will impose levies that match those imposed by trading partners.

President Trump posted that the decision on Mexican product tariffs was made after speaking with President Claudia Sheinbaum of Mexico. Justification for the tariffs has been tied to fentanyl deaths. If enough progress is made to confront the fentanyl issue, negotiations will turn to reciprocal tariffs.

U.S. Commerce Secretary Howard Lutnick had previously announced a one-month halt to tariffs on automotive products imported from Mexico and Canada. A reprieve on 25% tariffs for other Canadian USMCA-compliant products was announced late Thursday afternoon.

Canadian Prime Minister Justin Trudeau initially told reporters he expected the U.S. and Canada to remain in a trade war for the foreseeable future. On Thursday afternoon, the AP reported that two senior Canadian officials said retaliatory tariffs against the U.S. will remain in place.

Lutinck estimated more than 50% of goods imported from Canada and Mexico are compliant with the USMC deal that Trump negotiated during his first term.

Read more on the evolving trade tariffs here.