The delay of tariffs set to take effect Friday came after a phone call between President Trump and his Mexican counterpart, President Claudia Sheinbaum.

The U.S. Constitution gives the power to impose taxes — including tariffs — to Congress. But lawmakers have gradually relinquished power over trade policy to the White House. And Trump has made the most of the power vacuum, raising the average U.S. tariff to more than 18%, highest since 1934, according to the Budget Lab at Yale University.

The U.S. and China had agreed to pause most of the sky-high tariffs on each others’ goods amid trade negotiations – but that pause is set to expire in August.