©  Julia Demaree Nikhinson/Associated Press

PRESIDENT TRUMP'S FOREIGN POLICY doctrine of "America first" will be tested in the coming days, as he weighs potential compromises on tariffs and Ukraine, while China makes new threats against the U.S.

Trump’s tariffs on Mexico and Canada have roiled the financial markets and provoked dire warnings from economists that the burgeoning trade war threatens to sink the economy.

Canada retaliated with tariffs of their own, and Mexico will do the same Sunday, barring a deal.

Trump announced a carveout Wednesday: There will be a one-month exemption on tariffs for cars coming into the U.S. from Canada and Mexico.

The White House said Trump spoke with leaders of the “Big Three” automakers and decided to give them more time to come up with a plan to move their manufacturing operations to the U.S.

The exemption applies to Ford, General Motors and Stellantis, as well as other companies with production facilities in North America.

Trump’s Commerce Secretary Howard Lutnick signaled the trade war with two of the U.S.’s top trading partners could be scaled back as soon as today, but there were no signs of a thaw after Trump spoke with Canadian Prime Minister Justin Trudeau.

The Trump administration is seeking to address a trade imbalance with Mexico and Canada and to stem the flow of illegal drugs across the border as it considers whether to dial back the trade war.

Trump said on Truth Social that nothing Canada has done so far to address his concerns have been “good enough." He also accused Trudeau, who is not seeking reelection, of using the trade war to try to “stay in power.”

The president acknowledged in his joint speech to Congress on Tuesday night that Americans will experience some economic pain from the tariffs.

“There will be a little disturbance, but we’re OK with that," he said. "It won’t be much.”

Trump signaled the beginning of a thaw with Ukrainian President Volodymyr Zelensky during his Tuesday night speech, with the president quoting from a statement in which the Ukrainian leader expressed regret with how the Oval Office meeting between the two leaders escalated.

“I appreciate he sent this letter,” Trump said.

White House press secretary Karoline Leavitt called Zelensky’s note “a positive step forward.”

Still, Trump’s actions tell a different story.

The White House paused intelligence-sharing with Ukraine in its war against Russia as part of a broader review of assistance to Kyiv. This came after the U.S. put a freeze on aid to Ukraine.

Zelensky says he remains ready to sign a minerals deal with Trump at any time.

Leavitt said talks on the mineral deal are in progress, with national security adviser Mike Waltz discussing the matter with Trump in the Oval Office on Wednesday.

A top aide to Zelensky said a meeting between the U.S. and Ukraine could happen “in the near future.”

Tensions with Beijing are growing.

Trump this week doubled tariffs on China, which responded with its own retaliatory tariffs.

“If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end,” the Chinese Embassy in the U.S. posted to X.

Defense Secretary Pete Hegseth told Fox News “we don’t war with China” but said the U.S. will be “ready” if it comes to that. He noted Trump has a good relationship with Chinese President Xi Jinping.

The Justice Department has charged 10 people with hacking and cyber-espionage crimes targeting U.S. agencies, including the Treasury Department.

China will increase its defense budget by more than 7 percent this year, likely putting pressure on Congress to increase military spending in the U.S.

Trump said Tuesday night he’ll prioritize U.S. shipbuilding to counter China’s military moves.