Trump Delays Tariffs on Canada and Mexico Amid Border Security Deals

AFP

Washington: US President Donald Trump delayed the implementation of tariffs on Canada and Mexico for an additional month on Monday, while China remained a target for levies that continue to stir global economic concerns.

Both Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau reached last-minute agreements with Trump to enhance border security, particularly to curb the flow of migrants and fentanyl into the United States.

Global stock markets had taken a hit when Trump’s threatened 25 percent tariffs on exports from Canada and Mexico raised fears of a global trade war.

Following “very friendly” discussions with Sheinbaum, Trump announced he would “immediately pause” the tariffs on Mexico. Sheinbaum committed to sending 10,000 troops to the US-Mexico border as part of the deal.

Tensions between the US and Canada appeared more pronounced, but after two calls with Trudeau, Trump revealed on Truth Social that Canada had agreed to secure the Northern Border and tackle the fentanyl crisis.

Trudeau announced plans to deploy nearly 10,000 officers, label drug cartels as terrorist organizations, appoint a “Fentanyl Czar,” and ramp up efforts to combat money laundering. However, it was unclear how much these measures differed from Canada’s existing border security efforts, as 8,500 personnel were already in place by December.

Despite the progress with Canada and Mexico, China still faces an additional 10 percent tariff on top of existing duties, with ongoing talks aimed at reaching an agreement. Trump’s spokeswoman, Karoline Leavitt, confirmed that the president plans to speak with Chinese President Xi in the coming 24 hours.

The US’s three largest trading partners—Canada, China, and Mexico—were all affected by Trump’s tariff proposals. Wall Street’s main indices dropped sharply but regained some ground after the announcement of the Mexico deal. European markets in London, Paris, and Frankfurt ended the day lower.

The White House indicated that extensive discussions took place over the weekend, and National Economic Council Director Kevin Hassett emphasized that this was not a “trade war” but a “drug war,” claiming that Canada had misunderstood the situation. US government figures, however, show that a minimal amount of drugs enter the country via Canada.

In response to Trump’s actions, Canada has threatened strong retaliation, including public protests against US policies, boycotting American products, and even banning US companies from bidding on government contracts in Ontario, which amounts to billions of dollars. The province also scrapped a deal with Elon Musk’s Starlink.

Trump has also suggested that Canada could become the 51st state, further intensifying the strain on US-Canada relations. Amid these tensions, Trudeau faces political pressure, with the possibility of elections as early as April, following a political crisis spurred by Trump’s tariff threats.

Meanwhile, Mexico has been under intense pressure to secure its border as Trump vows a crackdown on undocumented migration.

Despite his controversial stance on tariffs, Trump has argued that the economic burden will fall on foreign exporters, not US consumers, though most experts dispute this claim. Acknowledging potential economic “pain,” Trump did concede that Americans might feel some impact from these policies.