President Donald Trump has agreed to delay imposing 25% tariffs on Canada and Mexico for 30 days, easing fears of a looming North American trade war. The temporary reprieve follows last-minute calls with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, each securing border security commitments in return.
Trudeau pledged to tighten Canada’s border with the U.S. and crack down on fentanyl trafficking, announcing a $1.3 billion border plan and a new “fentanyl czar.” Meanwhile, Sheinbaum agreed to deploy 10,000 troops to Mexico’s northern border, with the U.S. offering to curb the flow of firearms into the country in exchange.
While the North American neighbors secured temporary relief, tensions escalated with China as a new 10% U.S. tariff on Chinese imports took effect at 12:01 a.m. Tuesday. Beijing swiftly retaliated with its own tariffs, imposing duties of up to 15% on American coal, liquefied natural gas, crude oil, and agricultural machinery.
Trump described the tariffs on China as an “opening salvo,” warning they could become “very, very substantial” if negotiations fail. He plans to speak with China’s leader soon but has hinted at targeting the European Union next.
Economists warn that tit-for-tat tariffs could lead to rising consumer prices and market instability. Canadian officials, while relieved by the temporary pause, remain wary of Trump’s tariff threats, with Ontario Premier Doug Ford cautioning, “Whether it’s tomorrow, in a month, or a year… President Trump will continue to use tariffs to get what he wants.”
As the 30-day clock ticks, global markets brace for what could be another wave of economic uncertainty.
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