Trump postpones tariffs on most goods from Mexico for one month

President Donald Trump is delaying 25% tariffs on most goods from Mexico for a month after a conversation with that country's president.

What does this tariff delay for Mexico mean?

Why you should care:

Trump's tariff reprieve would apply to goods that are compliant with the trade agreement Trump negotiated with Canada and Mexico in his first term in office. 

The president's announcement comes after his Commerce Secretary, Howard Lutnick, told the Associated Press that tariffs on both Canada and Mexico would "likely" be delayed. 

Imports from Mexico that comply with the 2020 USMCA trade pact would be excluded from the 25% tariffs for a month, the AP reported, citing the orders signed by Trump. 

Imports from Canada that comply with the trade deal would also avoid the 25% tariffs for a month, while the potash that U.S. farmers import from Canada would be tariffed at 10%, the same rate at which Trump wants to tariff Canadian energy products.

Approximately 62% of imports from Canada would likely still face the new tariffs because they're not USMCA compliant, the AP noted, citing a White House official, who spoke on a condition of anonymity to preview the orders on a call with reporters. Half of imports from Mexico that are not USMCA compliant would also be taxed under the orders being signed by Trump, the official said.

Has Trump delayed tariffs before?

Big picture view:

This marks the second one-month postponement Trump has announced since first unveiling the import taxes in early February. The reprieve would apply to goods that are compliant with the trade agreement Trump negotiated with Canada and Mexico in his first term.

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What are tariffs? 

The backstory:

Tariffs are a tax on imports. Tariffs are typically charged as a percentage of the price a buyer pays a foreign seller. In the United States, tariffs are collected by Customs and Border Protection agents at 328 ports of entry across the country. 

RELATED: Trump signs tariff order; Mexico and Canada retaliate

Trump has been threatening tariffs to ensure greater cooperation from countries on stopping illegal immigration and the smuggling of chemicals used for fentanyl. Trump has also pledged to use tariffs to boost domestic manufacturing.

U.S. tariff rates vary: They are generally 2.5% on passenger cars, for instance, and 6% on golf shoes. Tariffs can be lower for countries with which the United States has trade agreements.