WASHINGTON — President Donald Trump agreed Monday to a 30-day pause on his tariff threats against Mexico and Canada as America’s two largest trading partners took steps to appease his concerns about border security and drug trafficking.

The pauses provide a cool-down period after a tumultuous few days that put North America on the cusp of a trade war that could have crushed economic growth, caused prices to soar and ended two of the United States’ most critical partnerships.

“Proposed tariffs will be paused for at least 30 days while we work together,” Canadian Prime Minister Justin Trudeau posted Monday afternoon on X, saying that his government would name a fentanyl czar, list Mexican cartels as terrorist groups and launch a “Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.”

The White House confirmed the pause with Canada, which followed a similar move with Mexico that allows for a period of negotiations about drug smuggling and illegal immigration.

On Saturday, Trump had directed 25% tariffs on imports from Mexico and Canada, with an additional 10% tariff on Canadian oil, natural gas and electricity. He also ordered a 10% tax on imports from China.

All of the tariffs were scheduled to start at midnight Tuesday. Canada and Mexico threatened retaliation, raising the prospects of a broader regional trade war.

The 10% tariff that Trump ordered on China is still set to go into effect, although Trump planned to talk with Chinese President Xi Jinping in the next few days.

Trump’s signing of tariff orders for the three nations set off alarms among investors, lawmakers, businesses and consumers. The taxes on imports, if sustained, could push up prices and sabotage growth, even as Trump has suggested that they are necessary to get other nations to stop illegal immigration, prevent fentanyl smuggling and treat the United States, in his mind, with respect.

Trump and Mexican President Claudia Sheinbaum announced the monthlong pause on increased tariffs against one another after what Trump described on social media as a “very friendly conversation,” and he said he looked forward to the upcoming talks.

“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” the president said on social media.

Trump said the talks would be headed by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, secretary of commerce nominee Howard Lutnick and high-level representatives of Mexico. Sheinbaum said she was reinforcing the border with 10,000 members of her country’s National Guard and that the U.S. government would commit “to work to stop the trafficking of high-powered weapons to Mexico.”

In 2019, when Mexico’s government also avoided tariffs from Trump’s administration, the government announced it would send 15,000 soldiers to its northern border.

But the outlook was worrisomely different for Canada for much of Monday, only for an agreement to come together.

Asked Monday afternoon — before the pause was announced — what Canada could offer in talks to prevent tariffs, Trump told reporters gathered in the Oval Office: “I don’t know.” He mused again about trying to make Canada the 51st state.

The president also indicated that more import taxes could be coming against China: “If we can’t make a deal with China, then the tariffs will be very, very substantial.”

White House press secretary Karoline Leavitt told reporters that Trump would speak with Chinese President Xi Jinping in the next couple of days and that the White House would provide a report on the discussion.

Financial markets, businesses and consumers are trying to prepare for the possibility of the new tariffs. Stock markets sold off slightly, suggesting some hope that the import taxes that could push up inflation and disrupt global trade and growth would be short-lived.

There is a risk that the tariffs could still come into effect, leaving the global economy uncertain about whether a crisis has been averted or if a possible catastrophe could still be coming in the weeks ahead.

Kevin Hassett, director of the White House National Economic Council, said Monday that it was misleading to characterize the showdown as a trade war despite the planned retaliations and risk of escalation.

“Read the executive order where President Trump was absolutely, 100% clear that this is not a trade war,” Hassett said. “This is a drug war.”

But even if the orders are focused on illegal drugs, Trump’s remarks have often been more about his perceived sense that countries are ripping off the U.S. by running trade surpluses. On Sunday, Trump said tariffs would be coming soon on countries in the European Union. He has discussed tariffs as a diplomatic tool on national security issues, a way to raise revenues and a vehicle for renegotiating trade pacts.

Multiple economists outside the administration have warned that the tariffs would push up prices and hamper growth, with Trump saying Sunday that there would be some short-term pain for American consumers and businesses despite having campaigned last year on the promise that he could tame inflation.