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After both countries commit themselves to enhancing the restriction of drugs and immigration, Trump accepts to temporarily suspend putting tariffs on Canada and Mexico part.
Mexico and Canada’s tariffs have been deferred depending on agreements regarding border security for 30 days and China is still functioning with a 10 per cent tariff.
However, Trump decided to pause the tariffs with Mexico and Canada for 30 days since they agreed to enhance border security but the same is not true for China’s 10 per cent tariff.
File Photo; P resident Trump with the first lady (AP)
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Washington: USA President Donald Trump accepted, on Monday the 30-day postponement of his threats to slap tariffs on Mexico and Canada provided that the two countries come up with ways of ensuring a curbing of insecurity along their borders as well as halting drug trafficking.
The breaks allow for a period of rest after the last few days that brought North America to the verge of a trade war that could slow economic growth, rapidly rise prices, and end two of the United States’ most important relationships.
I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured,” Trump quoted on his Twitter post. "FAIRNESS FOR ALL!"
A pause Trudeau stated Monday afternoon on X that the pause would “occur while we work together” before the government would appoint the fentanyl czar and list the Mexican cartels as terror groups and establish “Canada-U.S. Joint Strike Force to tackle crime, fentanyl and money laundering.”
It was similar to a gesture made with Mexico that contains provisions to have a time of bargaining in relation to drug trafficking and unlawful entry of aliens. The 10% tariff that Trump announced is going to be implemented as planned on Tuesday although Trump intends to speak with Xi Jinping in the coming days.
Even if the trade war thought to be opposed by investors, firms, and politicians to materialize is now seemed improbable, that does not mean that the drama concerning the tariffs threatened by Trump has come to an end. Canada and Mexico got some more time, but Trump knows how to restore the tariffs and in the next year, he intends to launch tariffs on the European Union.
That is why the global economy is unsure whether a catastrophe has been prevented or a potential one may be on the way in the coming weeks.
Trump on Saturday had placed levies of 25% on Mexican and Canadian imports as well as 10% on Canada’s oil, natural gas, and electricity. The U.S. president had for several times signaled these actions but they proved to be quite unexpected to many investors, lawmakers, businesses and consumers.
These analyses were conducted by the Tax Foundation, the Tax Policy Center and the Peterson Institute for International Economics revealing that the tariffs would reduce economic growth, decrease incomes and increase prices. Yet, Tariffs were so necessary to stop other country from legalizing immigrants, drug trafficking fentanyl etc… other countries had to show respect to him and United States.
“I look very much forward to talking with you soon,” Trump tweeted and he expressed he had a very friendly conversation with the Mexican President Claudia Sheinbaum about the issue and that they decided to put on pause on the tariffs for a whole one month.
Indeed the president has expressed his willingness in reaching out for the ‘deal’ with President Sheinbaum in addressing this issue in one of his social media posts.
The president sounded optimistic about the meeting by pointing out that the discussions would be led by the Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Secretary of Commerce nominee Howard Lutnick and the representatives of Mexico at the highest level of hierarchy. Sheinbaum announced she was placing extra 10,000 of her country’s National Guard along the border and the US government would ensure “put effort to prevent the smuggling of assault weapons into Mexico.
When the same year Mexico managed to convince the previous administration of the United States, led by Trump, not to impose tariffs, its government stated that it would deploy fifteen thousand soldiers to the northern border.
However, for most of Monday the condition was looking rather a source of concern for Canada, this however changed and an agreement was made.
A senior Canadian official stated that Canada was not certain that it could avoid the impending tariffs as Mexico did. That is why it appears that for Canada, the Trump administration seems to have been moving around the requests more than it did with Mexico. This was spoken on condition of anonymity as the individual was not allowed to give interviews to the press.
During a Q&A session on Monday, Trump was asked what exactly Canada could bring to the negotiations to avert tariffs, or steel and aluminum duties Trump demanded, by saying, “I don’t know”. He also wondered whether it is possible to make Canada a 51st state still harboring hostility towards each other after years of cooperation from the Second World War up to the fight against terrorism post September 11, 2001.
He also threatened that is the tariff war of the U.S and china does not turn around they will be imposing further tariffs that would be very high.
Spokeswoman Karoline Leavitt stated to journalists that Trump will talk to Xi in the next couple of days and that the White House will brief the reporters on the conversation.
Business and consumer were still attempting to make plans for the arrival of the new tariffs on Monday, in the financial markets. For instance, Stew Leonard Jr., the president and CEO of Stew Leonard’s supermarket chain stores located in Connecticut, New York and New Jersey was thinking of moving a heavy volume of Mexico’s Casamigos tequila before the tariffs arrived, and also go for fish from Norway instead of the Canadians.
Stock markets fell moderately, indicating some expectation that the import taxes that could lead to inflation and the disruption of trade and growth around the world would not be permanent. Trump even asked on Monday the outcome of the financial markets just as some of the reporters were exiting the Oval Office.
The situation represented an incredible confusion with a Republican president who has affectionately referred to tariffs, not to mention that he stated that the U.S government was wrong in 1913 to move from tariffs as its main source of revenue.
It can be considered that the director of the White House’s National Economic Council, Kevin Hassett said on Monday that it is erroneous to describe the conflict as a trade war even if the responses and potential further reactions to them are known.
”Watch the interview where the President was very clear that there is no trade war, Hassett said with certainty referring to 100 percent certainty. "This is a drug war."
However, even if the orders are in terms of threatening to cut funding for aid and trade with countries that supply the Us with illegal drugs, Trump himself looks at the foreign countries as benefiting themselves at the expense of the United States through trade surpluses. In his tweets on Sunday, Trump further pledged that tariffs are going to be imposed on countries in the European Union.
In his Monday, a proposal of readiness to continue with the tariff threats since the U.S economy is the largest, in the global market.
“Tariffs are very good for both economically & otherwise to get all others,” Trump said this to the reporters. Tariffs for us, nobody can compete with us because we are the finally the pot of gold. But if we are to continue not winning and not to perform well, then we can no longer be the financial powerhouse.”
