Amid warnings of price increases, Canada moved quickly to retaliate, China said it had planned countermeasures and Mexico said it would soon unveil its response.

According to President Sheinbaum, Mexico has cut a deal with the U.S. to delay the tariffs. Under the deal, she said Mexico is sending another 10,000 members of its national guard to the southern border to combat drug traffickers, while the U.S. has agreed to do more to prevent the trafficking of high-powered weapons to Mexico.

President Trump says Americans could feel 'some pain' from the emerging trade war he triggered with tariffs against Canada, Mexico and China.

The move likely will trigger retaliation and risk igniting a trade war that could cause broad economic disruption for all countries involved.

Traders and farmers hope that the Trump administration is using tariff threats as leverage in trade negotiations, as opposed to following through with a major disruption to agricultural trade.

The U.S. trade deficit hit near-record levels in late 2024 as America's trading partners prepare to navigate Trump's tariffs.