Trump presses pause on Canada/Mexico tariff hike

Following a hasty—and potentially illegal—presidential order to impose 25% tariffs on its key trading partners, the US government is hitting the pause button. Claiming the border threat with Canada and Mexico constituted a national emergency, President Donald Trump signed orders on 1 February that will hike imports from the two countries to 25%. Due to the existing US-Mexico-Canada Agreement (USMCA), this was only possible by drawing on the International Emergency Economic Powers Act. Both countries struck back, with Canada almost immediately issuing a similar tariff and threatening legal action, and Mexico promising a similar response.