President Donald Trump has decided to hold off on imposing 25% tariffs on Canadian and Mexican imports for 30 days. The decision came after urgent discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum.
Under the agreement, Canada will increase efforts to secure its border with the U.S. This move is aimed at reducing illegal migration and blocking the flow of fentanyl, a deadly synthetic drug. Mexico has already agreed to reinforce its northern border with troops, and in return, the U.S. has promised to limit the flow of guns into the country.
Despite the deal with North American neighbors, a new 10% tariff on Chinese imports has officially taken effect. The deadline passed at 00:01 EST, triggering swift retaliation from Beijing. China has imposed its own tariffs on American goods, including a 15% tax on coal and liquefied natural gas, as well as 10% on crude oil and agricultural equipment.
Trump has described the new tariffs on China as an “opening salvo” and hinted that they could become even more severe if a trade deal is not reached. He also mentioned plans to speak with China’s leader soon.
Monday’s agreement with Canada and Mexico came just in time, as both countries were preparing to retaliate with their own tariffs on American products. Following two phone calls between Trump and Trudeau, both leaders posted on social media about the temporary deal.
Trump framed the agreement as a necessary step for national security.
“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,” he wrote on Truth Social.
The deal is being viewed as a short-term solution, giving both sides time to negotiate further. However, trade experts warn that the situation remains uncertain. If border enforcement efforts do not meet expectations, Trump could still move forward with tariffs in a month. Meanwhile, the escalating trade conflict with China adds another layer of economic risk.
For now, businesses in North America can breathe a sigh of relief. But with tensions still high, the next few weeks will be critical in determining the long-term impact of these trade policies.
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