Inside the Chaotic Run-Up to Trump's U-Turn on Canada, Mexico Tariffs

The past 48 hours of tariff policies have stunned markets and boardrooms across the world

- Gavin Bade, Ryan Felton & Chip Cutter

On Thursday afternoon, less than 48 hours before President Trump was scheduled to slap tariffs on Canada and Mexico, White House chief of staff Susie Wiles got on a call with representatives from nervous automotive companies.

The administration, the firms were told, was considering a carve-out for cars that comply with Trump's North American free-trade deal—the main request of domestic automakers—according to people familiar with the call. The automakers came away feeling better about their chances of avoiding tariffs, the people said.

Less than an hour later in the Oval Office, Trump appeared to undermine his aides who were working to dial back his universal tariff threat, saying there was nothing the countries could do to stop the tariffs—and mentioned nothing about an automotive exemption. On Saturday, he said he would impose 25% tariffs on those countries—no exceptions, except for Canadian oil, which he hit with a 10% levy.

Trump also announced additional 10% duties on China.

Then on Monday, the White House whipsawed again. Trump agreed to delay tariffs on Mexico for a month after a phone call with Mexican President Claudia Sheinbaum in which she pledged national guard troops to help stop migration into the U.S.—an increase on offers Mexican diplomats had made the week before.

Canadian Prime Minister Justin Trudeau, later Monday, said Trump's tariffs on his nation were also delayed. "Canada is implementing our $1.3 billion [Canadian dollars] border plan—reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl," he said on X after a Monday call with Trump. "Proposed tariffs will be paused for at least 30 days while we work together."

Trump's tariffs on China were still slated to go into effect Tuesday.