President Trump delayed tariffs for both countries after Mexico’s leader presented her security successes, and after U.S. markets fell and business leaders urged the White House to change course.

Goods covered by the countries’ USMCA agreement get a reprieve, but levies remain in effect for many goods, including oil.

Howard Lutnick told CNBC “hopefully Mexico and Canada will have done a good enough job on fentanyl” that the U.S. will focus only on reciprocal tariffs.

President Donald Trump on Thursday postponed 25% tariffs on many imports from Mexico and some imports from Canada for a month amid widespread fears of the economic fallout from a broader trade war.

After a small rally, stock markets took another hit Thursday. The Dow dropped more than 500 points, while the Nasdaq and S&P both dropped more than two percent. It comes as the White House delays the 25 percent tariffs on goods from Canada and Mexico for a month.

President Donald Trump has granted an exemption on auto tariffs on Mexico and Canada for one month, White House Press Secretary Karoline Leavitt confirmed Wednesday.

Canada is delaying its plan for a second phase of retaliatory tariffs against the US after President Donald Trump exempted Canadian and Mexican goods covered by the North American trade agreement.

The U.S. now in a trade war with Canada, Mexico and China as the Trump administration imposes sweeping tariffs.

Canada enters day two of a tariff war with the United States with a glimmer of hope south of border. U.S. Commerce Secretary Howard Lutnick said Tuesday after markets closed that the Trump administration could announce a pathway for tariff relief on Mexican and Canadian goods covered by North America’s free trade agreement as soon as today.