US President Donald Trump has agreed to postpone the implementation of 25 percent tariffs on goods from Canada and Mexico. This decision comes after phone calls with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, where agreements were reached to address concerns over fentanyl trafficking and border security. The tariffs, initially threatened for February 4th, will be paused while negotiations continue.
US President Donald Trump has agreed to pause imposing tariffs on imported goods from Canada and Mexico, after threatening to bring them in from February 4. Mr Trump said the tariffs were needed to 'protect Americans' from the deadly drug fentanyl and to limit any illegal immigration into the country. But he will now delay them after calls with the Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum.
President Trump and the leaders of Mexico and Canada have struck last-minute deals to postpone the imposition of 25 percent tariffs on goods exported to the US. It took two telephone conversations with Mr Trudeau to cut a deal compared to the one with Ms Sheinbaum. Immediately deploy 10,000 members of its National Guard to their shared border. She also said the agreement included a US commitment to act to prevent trafficking of high-powered weapons to Mexico. Mr Trump said he had a 'very friendly conversation' with the president and looked forward to 'participating in the negotiations' with Mexico. 'I just had a good call with President Trump,' Mr Trudeau wrote. 'Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl.' Mr Trump said he was very pleased with the initial outcome. 'The tariffs announced on Saturday will be paused for a period to see whether or not a financial economic deal with Canada can be structured,' he posted on his social media platform Truth Social. The tariffs have been Mr Trump asked Ms Sheinbaum how long she wanted to pause the tariffs for which she suggested forever. However, he said Mexico could have one month to show results to which Ms Sheinbaum said, 'I am sure that in this month we are going to give good results'. Mexico and Canada are America's two largest trading partners. Speaking with the BBC, Mr Trump said that tariffs 'will definitely happen' with the EU and could come 'pretty soon'. The pauses provide a cool-down period after a tumultuous few days that put North America on the cusp of a trade war that risked crushing economic growth. still due to take effect within hours. Trump's trade war heats up China and the EU vow to hit back at Donald Trump's hefty tariffs that threaten to sow chaos and fracture relations. The call will be the pair's first known talks since Mr Trump took office on January 20. 'Then, the tariffs will be very, very substantial.' China's foreign ministry said in a statement over the weekend that it 'firmly deplores and opposes this move' and will take 'necessary countermeasures' at the World Trade Organization. of introducing import duties against some of the US's biggest and closest trading partners. It is also to force the countries to do more to The president's administration says chemicals used to make the drug come from China while Mexican gangs supply it illegally and have fentanyl labs in Canada. Mr Trump initially said he would impose a 25 percent tariff on goods from Canada and Mexico. So a product worth $4 would face an additional $1 charge applied to it. Who pays tariffs? Companies that import goods from abroad pay the tariffs to the US government. They typically pass their higher costs on to their customers in the form of higher prices. When the president said he would impose tariffs on Canada, Mexico and China, concern grew from economists that it would lead to higher prices for groceries, electronics and various other household expenses, which could put pressure on the US inflation rate. There are economic studies that show the impacts tariffs imposed by Mr Trump during his first term had on US consumers. For example, from 2018 to 2023, tariffs on imported washing machines saw the price of laundry equipment rise by 34 percent in the US. When the tariffs expired, prices fell. How Australia will be caught up in Trump's trade war Photo shows Donald Trump sits at a desk holding a black folder open with yellow-gold curtains and two flags behind him. After a fortnight in the White House, Donald Trump has fired off the big cannon, with tariffs on China, Canada and Mexico. And like it or not, Australia won't be spared from the impacts. During his first term as president, he imposed tariffs on $283 billion of US imports, with rates ranging between 10 and 50 percent. In response, several countries including China, Russia, Canada, Mexico and the EU all filed cases against the US with the World Trade Organization. In 2019, Mr Trump also used the threat of tariffs as leverage to persuade Mexico to crack down on migrants crossing the border
TRADE WAR TARIFFS CANADA MEXICO DONALD TRUMP ECONOMIC POLICY FENTANYL BORDER SECURITY INTERNATIONAL RELATIONS
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