President Trump initially imposed tariffs on Canadian and Mexican goods due to concerns about illegal immigration and the flow of fentanyl into the U.S., which he linked to a national emergency under the International Emergency Economic Powers Act (IEEPA).

The temporary pause applies to Mexican goods that comply with the U.S.-Mexico-Canada Trade Agreement (USMCA) and will last until April 2nd. This exemption was made following a discussion between President Trump and Mexican President Claudia Sheinbaum[3].

China's rejection of U.S. allegations regarding fentanyl trafficking complicates diplomatic relations and exacerbates trade tensions between the two countries, contributing to fears of a broader trade war[2].

The tariff decisions contribute to ongoing market volatility and economic uncertainty, affecting trade dynamics between the U.S., Canada, Mexico, and China. This volatility is particularly evident in stock markets and trade agreements[3].