President Donald Trump has agreed to a 30-day pause on new tariffs against Mexico and Canada after both countries pledged to strengthen border security and combat drug trafficking. The pause aims to ease tensions that nearly triggered a trade war, which could have harmed economic growth and raised consumer prices.

Axar.az, citing AP, reports that Trump announced the pause following commitments from Mexican President Claudia Sheinbaum to deploy 10,000 National Guard troops to reinforce the border and from Canadian Prime Minister Justin Trudeau to appoint a fentanyl czar, classify Mexican cartels as terrorist groups, and form a joint strike force with the U.S.

While tariffs on Canada and Mexico are on hold, Trump’s 10% tariff on Chinese goods remains scheduled, with potential new tariffs targeting the EU. Trump emphasized that these measures are part of a broader strategy to address illegal immigration, drug smuggling, and what he perceives as unfair trade practices.

Despite temporary relief, uncertainty looms over future trade relations, as Trump hinted at renewing tariffs if negotiations falter. Financial markets showed slight declines amid concerns about the lasting economic impact.