Trump Delays Trade War With Canada and Mexico for 30 Days: Tariffs on Hold, Border Security Deals Made

President Donald Trump has agreed to postpone the imposition of a 25% tariff on Canadian and Mexican goods for 30 days, preventing a potentially harmful trade war with the two neighboring countries. This decision follows last-minute phone calls between Trump and Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum.

In exchange for the tariff delay, Trudeau agreed to strengthen Canada’s border with the US to curb migration and address the fentanyl crisis, a synthetic drug of concern to the US. Meanwhile, Sheinbaum committed to sending 10,000 National Guard troops to Mexico’s northern border in exchange for the US reducing gun trafficking into Mexico.

In a separate development, a 10% tariff on Chinese imports went into effect on Tuesday, which prompted China to retaliate with its own set of tariffs on American products, including coal, liquefied natural gas, crude oil, and agricultural machinery.

The breakthrough with Canada and Mexico came just as they were preparing to impose retaliatory tariffs. After two phone calls, both leaders announced a temporary agreement that would ensure no new tariffs for at least 30 days, which both Trump and Trudeau hailed as a success.

Trudeau revealed Canada’s $1.3 billion border plan, which includes nearly 10,000 new border personnel and measures to combat fentanyl trafficking. This plan also includes increased coordination with US authorities and the deployment of drones and helicopters for surveillance. Canada will also appoint a “fentanyl czar” to help address this crisis.

Earlier, Trump had struck a deal with Mexico, suspending a separate tariff in exchange for Mexico sending troops to the border. This cooperation came after Mexico had already committed to sending soldiers in 2019 to prevent tariffs imposed by the previous Trump administration.

While the 30-day delay brings temporary relief, experts warn that continued tariff threats could lead to price hikes on various products, from cars to food. Canadian leaders, like Newfoundland and Labrador Premier Andrew Furey, remain cautious, acknowledging that the trade war is far from over and urging diplomatic solutions moving forward.

Ontario Premier Doug Ford expressed a similar sentiment, emphasizing that while the pause is welcome, Canada must remain vigilant about future tariff threats. Trump has already suggested that the European Union may be his next target for tariffs.

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