U.S. President Donald Trump has agreed to pause his planned 25% tariffs on Canadian and Mexican imports for 30 days after reaching last-minute deals with both countries’ leaders.

The decision came after Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum made key commitments to bolster their border security, deploy personnel, and take aggressive action against fentanyl trafficking.

The announcement, which arrived just hours before the tariffs were set to take effect at midnight on Tuesday, has temporarily calmed tensions but has done little to quell growing concerns from economists, business leaders, and politicians who criticize Trump’s trade war strategy as reckless and economically damaging.

Many experts have questioned the logic behind Trump’s escalating tariff threats, warning that such policies could lead to higher prices for American consumers, strained diplomatic relations, and economic uncertainty for U.S. businesses reliant on trade with North America.

Background of The Tariffs Wars

Trump has long accused Canada and Mexico of failing to stop the flow of illegal migrants and fentanyl into the United States. He has frequently blamed both nations for what he calls a border crisis, alleging that they have not done enough to prevent the movement of drugs and undocumented individuals across U.S. borders.

On Saturday, Trump made a dramatic move by announcing steep new tariffs on North American imports, declaring that protecting Americans was his duty as president and that he had made a campaign promise to stop illegal aliens and drugs from pouring across U.S. borders.

Under Trump’s original plan, all goods from Canada and Mexico would face a 25% tariff, Canadian energy products would be taxed an additional 10%, and a 10% tariff would apply to all goods from China.

The announcement sparked immediate backlash from Canadian and Mexican officials, as well as from businesses on both sides of the border. Canada and Mexico are two of the United States’ largest trading partners, and tariffs of this magnitude threatened to disrupt supply chains, increase prices on key goods, and strain economic ties.

In response, both nations scrambled to offer concessions that could convince Trump to reconsider his hardline stance.

Canada Concedes to $1.3 Billion Border Plan and Fentanyl Crackdown

During a last-minute phone call on Monday, Trudeau offered a series of commitments in exchange for Trump’s willingness to halt the tariffs. He later outlined these pledges in a post on X. Trudeau announced that Canada would list cartels as terrorists, ensure 24/7 surveillance on the border, and launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl, and money laundering.

Trudeau also unveiled a $1.3 billion border security plan, stating that nearly 10,000 Canadian officials would be assigned to border security operations. He pledged new helicopters and surveillance technology to monitor crossings and prevent drug smuggling.

“I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl,” he said.

Trudeau said he is making new commitments to appoint a Fentanyl Czar, list cartels as terrorists, ensure 24/7 eyes on the border, and launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl, and money laundering.

“I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million,” he added.

Mexico’s Concessions: 10,000 Troops on the U.S. Border

Meanwhile, in an effort to avoid an economic showdown, Mexican President Claudia Sheinbaum agreed to deploy 10,000 troops to the U.S.-Mexico border to help control illegal crossings. Trump, in a Truth Social post, praised Sheinbaum’s swift action, saying they had a friendly conversation in which she agreed to immediately supply 10,000 Mexican soldiers to stop the flow of fentanyl and illegal migrants into the United States.

As part of the deal, Trump also confirmed that the U.S. and Mexico would enter a 30-day negotiation period, led by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick. The tariffs would remain on hold for now, but Trump warned that they could be reinstated if Mexico and Canada fail to meet their commitments.

Experts Warn Trump’s Tariff War Could Backfire

While Trump is touting his move as a victory, economists and business leaders see it differently. Many argue that Trump’s tactics are reckless and damaging, potentially leading to higher costs for American consumers and businesses. Economist Paul Krugman slammed the move, calling it unnecessary economic self-sabotage that could stifle growth and increase inflation.

Business executives have also criticized Trump’s decision, saying it undermines long-standing trade partnerships. Wall Street reportedly described it as a dumb economic move, adding that the U.S. and Canada have one of the closest trade relationships in the world, yet Trump was treating them like an enemy instead of an ally.

Trump’s tariff threats have already prompted retaliatory measures in Canada. Several provincial leaders have pledged to remove American alcohol from store shelves, a move that could escalate tensions. If the U.S. reinstates the tariffs after 30 days, experts warn that Canada and Mexico could retaliate, imposing their own trade restrictions on U.S. products. Such measures could have severe consequences for key American industries, including agriculture, automobiles, and technology.

All The Aggressions for A Biden’s Deal?

Beyond the economic consequences, many are questioning whether Trump’s aggressive tactics were even necessary. Some analysts argue that the agreements reached mirror deals already negotiated under former President Joe Biden. A commentator on social media asked if Trump had really risked the entire U.S. economy to get the same deal Biden got from Mexico.