MEXICO CITY/WASHINGTON/OTTAWA: United States President Donald Trump suspended his threat of steep tariffs on Mexico and Canada on Monday (Feb 3), agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighbouring countries.
US tariffs on China are still due to take effect within hours.
Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum said they had agreed to bolster border enforcement efforts in response to Trump’s demand to crack down on immigration and drug smuggling. That would pause 25 per cent tariffs due to take effect on Tuesday for 30 days.
Canada agreed to deploy new technology and personnel along its border with the US and launch cooperative efforts to fight organised crime, fentanyl smuggling and money laundering.
Mexico agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal migration and drugs.
The US also made a commitment to prevent trafficking of high-powered weapons to Mexico, Sheinbaum said.
“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 said on social media.
The agreements forestall, for now, the onset of a trade war that economists predicted would damage the economies of all involved and usher in higher prices for consumers.
After speaking by phone with both leaders, Trump said he would try to negotiate economic agreements over the coming month with the two largest US trading partners, whose economies have become tightly intertwined with the US since a landmark free-trade deal was struck in the 1990s.
This came less than 48 hours after Trump announced sweeping tariffs on goods from the top three US trading partners, accounting for US$2.1 trillion of annual commerce.
