A potential trade war between the United States and its two neighbors has been thwarted for now, though the U.S.-China status remains murky after both parties implemented tariffs on Tuesday, their leaders yet to speak with one another as of late afternoon.

President Donald Trump's tariff dispute with China, Canada and Mexico over fentanyl smuggling and illegal immigration has led to retaliation by the Chinese government.

The U.S. ended 2024 with the second-largest trade deficit on record — and China and Mexico were the countries that benefited most from sending goods to America. Canada? Not so much.