In a last-minute move, President Trump has decided to hold off on imposing tariffs on Mexico and Canada for a month. This decision came after both countries promised to step up their efforts to curb drug trafficking and illegal migration into the U.S.

The temporary delay avoids what could have been a damaging trade war, especially since these two nations are among America’s top trading partners. However, tariffs on China are still set to kick in today, with Trump warning that these could be just the beginning of tougher trade measures.

The back-and-forth negotiations highlight Trump’s strategy of using tariffs as a bargaining chip, even though experts worry about the economic fallout. With Mexico, China, and Canada accounting for a massive chunk of U.S. imports—worth over $1 trillion annually—the potential for rising prices and disrupted supply chains is real.

Stock markets took a hit early Monday before Trump announced the deal with Mexican President Claudia Sheinbaum. Later in the day, a call with Canadian Prime Minister Justin Trudeau led to the 30-day tariff delay. Trudeau shared that Canada is moving forward with a $1 billion plan to strengthen its border and crack down on issues like fentanyl trafficking.

For now, the threat of tariffs has been pushed back, but the situation remains tense as global trade dynamics continue to shift.