Trump agrees to pause tariffs on Canada, Mexico

United States President, Donald Trump, has agreed to delay imposing 25% tariffs on Canada and Mexico for 30 days.

The decision follows separate negotiations with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, who each committed to tightening border security in exchange for the tariff relief.

After last-minute discussions with Trump, Trudeau agreed to bolster Canada’s border with the US to curb migration and the trafficking of fentanyl, a powerful synthetic opioid. 

Meanwhile, Sheinbaum pledged to deploy troops to Mexico’s northern border to stem illegal crossings, with the US reciprocating by limiting the flow of firearms into Mexico.

While the temporary agreement eased tensions with Canada and Mexico, a separate tariff battle escalated with China. At 00:01 EST (05:00 GMT) on Tuesday, a 10% tariff on Chinese imports took effect after a deadline for negotiations expired. 

In response, Beijing swiftly imposed retaliatory tariffs, targeting American exports with a 15% levy on coal and liquefied natural gas, as well as a 10% duty on crude oil and agricultural machinery.

Trump signalled that the US-China trade conflict could intensify, describing the initial tariff as the “opening salvo” and warning that duties could become “very, very substantial” if no agreement is reached. He also indicated plans to speak with his Chinese counterpart soon.

The breakthrough with Canada and Mexico came as both countries prepared to impose retaliatory tariffs on American goods. 

Tribune Online reports that Canadian Prime Minister, Justin Trudeau, on Saturday, announced retaliatory tariffs against the United States in response to the now-suspended Trump’s imposed tariffs on Canadian imports. 

Following two phone calls on Monday, Trump and Trudeau announced on social media that they had reached a temporary deal on border security, securing a tariff reprieve for at least 30 days. Both leaders framed the agreement as a mutual victory.

“As president, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that. I am very pleased with this initial outcome,” Trump wrote on Truth Social.

Trudeau confirmed that Canada was implementing a $1.3 billion (£1bn) border security plan, which includes nearly 10,000 frontline personnel and enhanced resources to combat fentanyl trafficking. 

The plan also involves the appointment of a “fentanyl czar” and the creation of a joint strike force with the US to tackle crime, drug smuggling, and money laundering. 

Trump’s separate agreement with Mexico, announced hours earlier, saw him suspend tariffs in return for Sheinbaum dispatching 10,000 National Guard troops to the US-Mexico border. 

The Mexican president disclosed the agreement on X, stating she had a “good conversation with great respect for our relationship and sovereignty” with Trump.

Trump characterised his discussion with Sheinbaum as “very friendly,” recalling a similar arrangement in 2019 when Mexico deployed 15,000 troops to its northern frontier to avoid tariffs from his first administration.