Trump during his address to Congress said that Canada and Mexico ‘have allowed fentanyl to come into our country at levels never seen before.’

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.

President Donald Trump will exempt Mexican and Canadian goods covered by the North American trade agreement known as USMCA from his 25% tariffs, offering major reprieves to the U.S.’s two largest trading partners.

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 Trump said Mexico and Canada must do more to stop the flow of fentanyl into the U.S. A bootleg version of the synthetic opioid, largely produced by Mexican cartels, has created a public health overdose crisis in the U.

Trump put 25% tariffs on goods from Canada and Mexico on Tuesday. Markets tanked. And by Thursday, he had decided to broadly lift them.

While President Donald Trump has said the tariffs are meant stop the flow of drugs across the border, experts worry it may undermine progress already underway.

"American importers pay the tariffs and then do everything they can to pass that cost on to American consumers," John Bolton said.