WASHINGTON (AP) President Donald Trump said Thursday that he has postponed 25% tariffs on most goods from Mexico for a month amid widespread fears of the impact of a broader trade war.

Trump’s announcement comes after his Commerce Secretary, Howard Lutnick, said earlier Thursday that tariffs on both Canada and Mexico would “likely” be delayed. No change was announced regarding the new tariffs imposed on Canada.

This is the second time Trump has postponed tariffs for a month since he first unveiled the import taxes in early February. The reprieve would apply to goods from Mexico that are compliant with the trade agreement Trump negotiated with Canada and Mexico in his first term.

“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” Trump said on Truth Social. “I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border.”

No details were released Thursday about what led to the temporary lifting of tariffs on Mexico.

Trump’s on-again, off-again tariffs threats have roiled financial markets, lowered consumer confidence, and enveloped many businesses in an uncertain atmosphere that could delay hiring and investment. Lutnick emphasized that reciprocal tariffs, in which the United States applies import taxes on countries that tariff U.S. exports, will still be implemented April 2.

Major U.S. stock markets bounced off lows after Lutnick spoke, but only briefly. Significant declines already seen this week resumed within an hour. The stock market has fallen steadily this week in response to Trump’s tariff policies and the S&P 500 stock index is now below where it was before Trump was elected.

Sheinbaum said she and Trump “had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results,” on a post on the social media platform X, formerly Twitter.

Mexico has cracked down on cartels, sent troops to the U.S. border and delivered 29 top cartel bosses long chased by American authorities to the Trump administration in a span of weeks.

Canadian Prime Minister Justin Trudeau on Thursday indicated that he expects his country will be in a trade war with the United States for the foreseeable future.

Trudeau said the broader month-long pause “aligns with some of the conversations that we have been having with administration officials.”

The Canadian leader said the move by the Trump administration was a “promising sign,” but it also “means that the tariffs remain in place and therefore our response will remain in place.”

Lutnick said both Canada and Mexico “have done a good job offering us ever more work” on stopping fentanyl at the border, a key demand that Trump has made in return for permanently lifting the tariffs. Trump has also offered many other reasons for his tariffs, including raising revenue for the federal government, returning manufacturing to the United States, and reducing the trade surpluses both countries have with the U.S.

_____

Associated Press writers Josh Boak and Megan Janetsky contributed to this report. Janetsky reported from Mexico City.