What’s latest on Trump’s tariffs? Here’s where things stand with Mexico, Canada and China

The U.S. and some of its closest trade partners have gone back and forth on trade polices in recent days after President Donald Trump announced tariffs on goods from Mexico, Canada and China.

Capping off his second week back in office, Trump announced tariffs of up to 25% on goods from Mexico and Canada and a 10% tariff on goods from China. Stocks tumbled Monday morning, rattled by the announcement, but by the end of the day he announced deals with both North American countries to delay the tariffs by 30 days after the nations agreed to help with border security.
As of Tuesday afternoon, the 10% tariff on goods from China was in effect after the country responded with tariffs on some U.S. goods.

Here’s what to know about the recent flurry of tariffs news.
What is a tariff?

A tariff is a form of tax imposed on imports from another country. The domestic business buying goods from another country pays the additional fee, but the extra costs often get passed onto consumers.
Economic theory generally shows higher trade barriers raise consumer prices and negatively impact economic output and income, according to the Tax Foundation, a nonpartisan tax policy nonprofit.

Tax Foundation senior policy analyst and modeling manager Garrett Watson previously told USA TODAY that some argue for tariffs to get more demand for domestic manufacturers, even though they are also part of the global supply chain that could be impacted by tariffs.

National security is also an argument for using tariffs to ensure domestic production.
What’s the latest with US tariffs on Mexico?

Trump announced Friday he would impose a 25% tariff on imports from Mexico, diverting from a free-trade agreement he signed in his first term that was not up for renegotiation until 2026.

In a phone call Monday, Trump and Mexico President Claudia Sheinbaum agreed that her country would send 10,000 National Guard troops to its northern border, while the U.S. would work to slow the flow of American weapons south of the border.
Their agreement means the tariffs are on pause for a month.

The S&P 500 stock index recovered some losses after the deal was announced, thought White House Press Secretary Karoline Leavitt said the morning’s market dip did not influence the deal.