- President Donald Trump said Canada’s and Mexico’s pledges to boost border security to stop illegal drugs were insufficient to keep his tariffs on hold.
President Donald Trump said Sunday that Mexico’s and Canada’s actions to stave off his steep tariffs are not sufficient.
After announcing tariffs on the two countries last weekend, he agreed on Monday to pause them for 30 days, citing pledges he received from Mexico and Canada to boost border security.
When asked in a Fox News interview if that was enough, Trump replied, “No, it’s not good enough.
“Something has to happen. It’s unsustainable, and I’m changing it,” he said after being asked if more has to happen in 30 days.
The Canadian and Mexican embassies in the U.S. didn’t immediately respond to requests for comment.
On Monday, Mexican President Claudia Sheinbaum agreed to send 10,000 troops to the border, and in return Trump said he would work to limit the influx of American guns into the country.
Additionally, Canadian Prime Minister Justin Trudeau agreed to appoint a fentanyl czar to collaborate with the U.S., launch a Canada-U.S. joint strike force to fight against organized crime, and invest $200 million to gather intelligence on organized crime.
In the Fox interview, Trump also doubled down on his aspirations for Canada to become the 51st state.
“We lose $200 billion a year with Canada, and I’m not going to let that happen. It’s too much,” he said. “Why are we paying $200 billion a year essentially in subsidy to Canada? Now if they’re a 51st state, I don’t mind doing it.”
In 2024, the U.S. had a $63.3 billion goods trade deficit with Canada, narrowing from the year prior when it was $64.2 billion, according to the U.S. Census Bureau.
Additionally, Trump claimed that the U.S. has a $350 billion trade deficit with Mexico. The Census reports that in 2024 the goods trade deficit with Mexico was $172 billion, and in 2023 it was around $152.5 billion.
According to a note Tuesday from Yardeni Research, the key to understanding Trump’s tariff approach toward Canada and Mexico is energy and national security.
“For Trump to secure the U.S.’s energy future, he needs the Western Hemisphere to function as a coherent energy bloc,” market veteran Ed Yardeni wrote. “This means both a reliable, unimpeded flow of oil and natural resources from Canada and a safer Mexico. And that means both countries under the U.S.’s thumb.”
