President Donald Trump signed on Monday a 30-day pause to the implementation of 25% tariffs on goods from Mexico and Canada. Trump initiated the plan on Feb. 1 as a way to push for more action by both countries to halt illegal immigration and drug traffic into the U.S.
Canada and Mexico both were prepared to implement their own tariffs on U.S. products, sparking what figured to be a drawn-out trade war, upsetting North American trade dynamics for a variety of agricultural products.
In phone calls with leaders of both countries, the trade war is off for another month. But what comes after is anyone’s guess.
Trump was pushing Canada for stronger commitments to stop fentanyl coming into the U.S., a concession Canadian Prime Minister Justin Trudeau agreed to by pledging to name a fentanyl czar, listing Mexican cartels as terrorist groups and creating a strike force with U.S. officials. Trudeau also agreed in a phone call with Trump to spend $1.3 billion on border security, including 10,000 more frontline personnel and improved technology and helicopters.
"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 said in a social media post.
Earlier Monday, Trump negotiated another 30-day tariff delay with Mexico President Claudia Sheinbaum with similar conciliations on border security. Sheinbaum pledged to send 10,000 more soldiers to the U.S. border.
Both Sheinbaum and Trudeau had outlined U.S. products to be targeted for retaliatory tariffs.
The 30-day reprieve to a trade war may move into a whole new direction beyond fentanyl, immigration or Canada and Mexico’s complaint about U.S. guns coming across their borders. Trump outlined later Monday that he finds Canada’s limits on U.S. banking to be an unfair tactic, while Canada defended its banking system as more secure and responsive to Canadian laws.
Trump had made no actions on Monday to halt his announced 10% tariffs on Chinese goods.
