Will Grant
BBC Mexico correspondent

Image source, EPA

One of the biggest questions thrown up by this latest postponement on tariffs is whether it is merely another temporary stay of execution, or if it could lead to a more permanent cancellation of the threat.

On the one hand, Trump is unlikely to relinquish a tool he considers extremely effective, even if economists question the wisdom of that policy. At the very least, his supporters claim, threatening tariffs helps to bring people to the negotiating table on issues they might otherwise have been happy to ignore.

However, he runs a danger of becoming the boy who cried wolf on tariffs in North America.

It does no favours for the American, Mexican or Canadian economies to have this uncertainty hanging over them, and in due course a more robust and reliable trading relationship will surely be in everyone's interest.

The regional free trade agreement between the three countries - USMCA - is due for renegotiation next year, and it will be interesting to see if the neighbours have established a more normal working relationship by then.

Certainly a month-to-month threat of tariffs followed by last-minute cancellations doesn't seem sustainable.

We're ending our live coverage of today's tariff changes for now, but you can stay up-to-date on the latest here: Trump expands exemptions from Canada and Mexico tariffs

Some of the sweeping 25% tariffs which US President Donald Trump imposed on Mexico and Canada just a few days ago will now be suspended until next month - here's what we know so far about today's changes:

• The exemptions announced today only apply to goods covered under the USMCA trade agreement - that accounts for around half of Mexico's exports to the US, and less of Canada's

• The suspension runs until 2 April, when Trump has teased reciprocal tariffs against other countries could be imposed
• Asked if at that point car manufacturers - who the president says were crucial to the suspension being enacted - could expect another reprieve, Trump says: "We're not looking at that"

• Steel and aluminium tariffs will proceed as planned next week, he adds
• The turnaround was not forced by the stock market, according to the president - it has fallen in the days since the tariffs were first implemented. Trump says: "I'm not even looking at the market because long-term the United States will be very strong with what's happening here"
• Mexican President Claudia Sheinbaum thanked Trump for the pause, and says the two countries "will continue to work together" to combat fentanyl crossing the border
• Meanwhile, Canada has postponed the implementation of some of its tariffs against the US - also until 2 April - but Ontario looks set to continue implementing a surcharge on electricity it sends to some US states

Image source, Reuters

Stock markets across the world have witnessed a roller-coaster ride over the last few days as investors grappled with the uncertainty around US President Donald Trump's announcement and rollback of tariffs.

The US dollar has weakened and stocks have slid. Tech shares stumbled, and recession-fears continued to weigh on financial stocks.

The uncertainty continued on Thursday, when Trump announced the suspension of some tariffs on Mexico and Canada.

All three major US stock indices closed down on Thursday. The Dow closed lower by 428 points, or 0.99%. The broader S&P 500 fell 1.78%, and the Nasdaq Composite slid 2.61%.

Investors are unnerved by the day-to-day changes in the White House's tariff policy, with delays and exemptions on the table, the Wall Street Journal reported.

"Much will depend on whether these new tariffs prove temporary or are toned down," strategists at BNP Paribas told the Associated Press. "But even if they are ultimately removed, we anticipate lasting damage to global economic activity."

Trump on Thursday blamed "globalist countries and companies that won't be doing as well" for the stock market slide of recent days.

"I'm not even looking at the market because long-term the United States will be very strong with what's happening here," he told reporters in the Oval Office.

Commerce Secretary Howard Lutnick too reinforced the message.

"The president wants American growth and American prosperity, okay? And the fact that the stock market goes down half a percent or percent, it goes up half a percent or percent, that is not the driving force of our outcomes," Lutnick told CNBC on Thursday.

Natalie Sherman
New York business reporter

The tariffs imposed earlier this week - and then partially repealed today - from the Trump administration on China, Mexico and Canada will hit trade from countries that supplied more than 40% of the nearly $3.3tn worth of imports into the US last year.

If they are fully brought back into force, the fees could, in theory, raise more than $141bn in 2025 and more than $1.4tn over 10 years, according to estimates by the Tax Foundation.

But that doesn’t mean the US would actually collect that much new revenue.

The forecast doesn't, for example, include the cost of potential retaliation, which could reduce tax collections from businesses or workers that are hurt.

As for what the government might do with the money?

Trump has promised to extend tax cuts from his first term – and make further cuts. He has even floated the idea of replacing America's income tax with tariffs.

But the US is set to spend $7tn in 2025 and is already facing a budget gap of $1.9tn, according to estimates by the Congressional Budget Office. The potential tariff revenue represents a tiny drop in that bucket.

Dharshini David
Chief economics correspondent

Forecasts are always uncertain at the best of times.

Much will depend on when and if these newly exempt tariffs come back into force, how long the still-in-place ones last, which other countries they spread to, what retaliatory actions are taken and how businesses and consumers react.

How much of the tariffs will businesses pass on to consumers, for example?

Will consumers change their buying patterns? There is much uncertainty – in an environment President Trump has engineered to be uncertain.

But what we do know is this: history tells us that trade wars push up prices and squeeze prosperity.

So for now, economists expect an escalating trade war would dull growth on average globally as targeted countries suffer.

Canada "will not proceed with the second wave of tariffs" on billions of US goods, the country's finance minister says, after the US announced it was pausing the implementation of some tariffs against Canada.

In a post on X, Dominic LeBlanc says the tariffs will be postponed until 2 April - just like the US's - "while we continue to work for the removal of all tariffs".

But Ontario Premier Doug Ford says "a pause on some tariffs means nothing" and "until President Trump removes the threat of tariffs for good, we will be relentless".

"The only thing that's certain today is more uncertainty," he writes in a post on X.

Ford has previously announced that he will implement a 25% surcharge on electricity exports to three US states, and if tariffs escalated, said he would consider cutting Michigan, New York and Minnesota off from Canadian power.

Nada Tawfik
Reporting from New York

Image source, Getty Images

As a young real estate developer, Trump believed just as strongly in tariffs as a tool to pressure other countries to open their markets as he does today.

A key factor in shaping his views was his "tremendous resentment for Japan", as he often complained that he had difficulties doing deals with large groups of Japanese businessmen.

"I'm tired of watching other countries ripping off the United States."

This Trump quote could've been pulled from his 2016 election campaign, but it's actually from the late 80s when he made an appearance on CNN's Larry King Live, around the time he first floated his name as a potential presidential candidate.

Fresh from sharing his business philosophy in his 1987 book, The Art of the Deal, Trump went on a tirade against America's trade policies in national interviews.

In an animated interview with Oprah Winfrey, he said he would handle foreign policy differently by making the country's allies "pay their fair share".

There wasn't free trade when Japan was "dumping" products into America's market but making it "impossible to do business" there, he added.

Read more about Trump's early career views on tariffs here: How Japan sparked Trump's 40-year love affair with tariffs.

The president says "the big one" will be on 2 April when countries could face reciprocal tariffs.

An example of a "high-tariff nation" at the moment is Canada, Trump says, and lists off products that he believes the Canadians overcharge the US in tariffs.

"We don't need trees from Canada, we don't need cars from Canada, we don't need energy from Canada, we don't need anything from Canada," the president says.

Asked about this specific USMCA exemption announced today, Trump calls it a "short-term modification" implemented because it "would've hurt the American car companies" if tariffs were enforced.

Asked if car manufacturers can expect the same sort of exemption again next month, the president replies: "We're not looking at that".

The president was just speaking in the Oval Office, while signing a fresh raft of executive orders.

Asked by reporters why the markets have been spooked by his recent announcements of tariffs, Trump says "a lot of them are globalist countries and companies that won't be doing as well because we're taking back things".

The president says "this is something that we have to do" and "there'll always be a little short-term interruption".

And on whether some of these exemptions announced today have been influenced by the market, Trump says "no".

"I'm not even looking at the market because long-term the United States will be very strong with what's happening here," he says.

More now from President Trump's signing of two orders pausing tariffs on Mexico and Canada for USMCA-compliant goods - though the fees remain in place on other goods.

Trump confirms that steel and aluminium tariffs will proceed next week and warned automakers not to request another carve-out next month.

Image source, Getty Images

We're getting some more details on these new tariff pauses for Canada and Mexico now as we hear lines from Trump speaking to reporters in the Oval Office a few minutes ago.

"We had a very good conversation," Trump says of his earlier phone call with Mexican President Claudia Sheinbaum, saying the US helped them out with a "problem" they were having with the tariffs.

Stay with us, we'll bring you more lines as we hear them.

Canada has been given the same tariff suspension deal as Mexico was earlier today, according to White House officials - that's an exemption for all goods imported under the USMCA trade agreement until 2 April.

While around half of Mexico's goods are covered by the USMCA, that percentage is less for Canada - so some goods from both countries will still be subject to these tariffs.

On what changed Donald Trump's mind, White House officials say it was due to promises made from car manufacturers to start moving their supply chains back to the US.

It was also partly due to work the two countries have done to show a commitment to cutting fentanyl deaths, they say.

Both executive orders have just been signed by the president in the Oval Office. They're titled: “Amendments to duties to address the flow of illicit drugs across our northern border” and “Amendments to duties to address the flow of illicit drugs across our southern border”.

President Donald Trump signs a deal to suspend some of the Canada tariffs until 2 April, hours after signing a similar exemption for Mexico.

Stay with us as we continue to bring you the latest.

Image source, Getty Images

President Trump hails tariffs as a miracle tool to usher in a new "golden age" - a key campaign promise. He calls "tariff" the fourth-most beautiful word in the dictionary, after “God," “love,” and “religion”.

To Trump, tariffs solve everything: the national deficit, immigration, jobs, fentanyl trafficking, and national security.

In his address to the joint session of Congress earlier this week, the Republican president declared tariffs "are about protecting the soul of our country… making America rich again and making America great again".

Experts say tariffs can counter unfair trade practices but warn they may fuel inflation and slow economic growth. Last month, The Wall Street Journal editorial board called Trump's plan “the dumbest trade war in history".

Still, his commitment remains firm. On Thursday, his commerce secretary reinforced the message: “The president is focused on rebuilding America, and you are going to see growth in America... You’re going to see interest rates drop 1% or more. You’re going to see the stock market explode.”

Natalie Sherman
New York business reporter

Trump’s whiplash trade actions are coming against a backdrop of worried financial markets and other financial data suggesting cracks may be starting to form in the US economy.

Gregory Brown, who leads BenLee - a company that makes big trailers - says he has had to adjust prices multiple times over the last five weeks as a result of Trump’s policies, which have included an order, set to go into effect later this month, expanding tariffs on steel and aluminium.

But Mr Brown, one of the business people I buttonholed after the speech of the Treasury Secretary Scott Bessent at the Economic Club of New York, says for now, his customers are agreeing to pay the higher prices – a sign that the economy is holding up.

“It’s a great growth economy,” he said, noting that the economy had been strong under Biden too. He said he saw Trump’s decision to quickly offer relief from his new tariffs was a sign of a business friendly president adjusting to the “business reality”.

But others I spoke to were more worried that the back-and-forth would cause economic damage.

“I think we’re going to have a recession before whatever succeeds in the future,” one of the investment managers I spoke to warned: “You’re going to get the bad before you get the good.”

Nomia Iqbal
North America correspondent

Keeping on top of Donald Trump’s tariffs is no easy task. From actual announcements to threats, it’s hard to know exactly what his policy is.

Earlier this week he enacted 25% tariffs on Canada and Mexico after delaying them for a month following his initial threat.

Yesterday, he announced temporary relief for carmakers on tariffs on Mexico and Canada and, now, many more of the sweeping tariffs imposed on Mexican goods imported to the United States will be suspended until 2 April.

We know Trump loves tariffs and so it may be a negotiating tactic aimed at winning policy concessions in deals with other countries. But there’s a risk that if it is short-term posturing, it could get less effective the more he does it - because countries will see what he's doing.

To a large extent, Trump’s chaos is the point - and it politically appeals to so many people who voted for him.

But it has sown confusion, leaving markets scrambling and relations strained with allies.

Image source, EPA

Mexican President Claudia Sheinbaum says she presented US President Donald Trump with data showing her country's work towards stopping fentanyl from crossing the border.

During a news conference, she says that in the "respectful call" she told Trump that in February "the reduction in fentanyl seizures on the US side of the border with Mexico was reduced by 41.5%".

Sheinbaum adds that she also told Trump that Mexico's decision to put 10,000 guards at the border, as well as the customs review, was "giving results".

Addressing the US president, she says: "Now that you put in the tariffs - how are we going to continue cooperating and collaborating with something that hurts the people of Mexico?'”

Natalie Sherman
New York business reporter

Image source, Getty Images

The stakes are rising for 2 April when the Trump administration has promised to set out its plans for "reciprocal" tariffs.

During a speech at the Economic Club of New York this afternoon, US Treasury Secretary Scott Bessent appears to suggest that moment would kick-off a series of trade negotiations with countries around the world.

He also offers a glimpse of what discussions on tariffs with the UK and the EU might look like - focusing on the taxes on tech firms Europe and Britain have imposed in recent years.

Bessent says the White House will be pushing back against those policies, noting UK PM Keir Starmer's recent visit and saying the leaders had a "very good discussion about getting going on all of this and more".

The treasury secretary also suggests foreign leaders should keep their cool when negotiating with Donald Trump, and offers unusually pointed criticism of Canadian Prime Minister Justin Trudeau.

"If you want to be a numbskull like Justin Trudeau and say, 'Oh we’re going to do this', then tariffs are probably going to go up,”" he says.

Canadian Prime Minister Justin Trudeau says he had a "colourful" conversation on the subject of tariffs in a phone call with US President Donald Trump.

Canadian public broadcaster CBC News, citing a senior Canadian government source, reports Trump used profane language more than once during a heated exchange around dairy that took place on Wednesday.

Trudeau says the nearly hour-long call was "substantive" and discussions are ongoing.

Image source, Reuters

Tariffs are a central part of Trump's economic plans - he says they will help boost US manufacturing and protect jobs, as well as raise tax revenue and grow the economy.

Goods from China, Mexico and Canada - three of his recent targets for tariffs - accounted for more than 40% of imports into the US in 2024.

When the president first announced his plans for new tariffs, the White House said, external Trump was "taking bold action to hold [the three countries] accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country".

Fentanyl is linked to tens of thousands of overdose deaths in the US each year.

The Trump administration says the chemicals come from China, while Mexican gangs supply it illegally and run fentanyl labs in Canada.

Canadian Prime Minister Justin Trudeau said his country was responsible for less than 1% of fentanyl entering the US, most of which comes from Mexico.

• Still got questions on Trump's use of tariffs? Our correspondents answered your questions yesterday