US, Canada and Mexico Won’t Impose Immediate Tariffs After a Day of Calls
In a series of high-level discussions on Monday, President Donald Trump, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum reached an agreement to delay the implementation of proposed tariffs for 30 days. This decision follows President Trump’s initial announcement of imposing a 25% tariff on imports from Canada and Mexico, aimed at addressing concerns over border security and the influx of fentanyl into the United States.
As part of the agreement, Mexico has committed to deploying an additional 10,000 National Guard troops to its northern border to enhance security measures. Mexico is the largest buyer of U.S. pork, poultry, dairy and wheat products. Also, Canada is advancing a $1.3 billion border security initiative, which includes the appointment of a fentanyl czar, an additional $200 million investment to combat organized crime and fentanyl distribution and the inclusion of Mexican cartels on Canada’s terrorist watch list.
These collaborative efforts aim to strengthen regional security and address the pressing issue of fentanyl trafficking, which has been a significant concern for the United States. The 30-day suspension of tariffs provides a window for the three nations to implement these measures and assess their effectiveness in mitigating the challenges at hand.
While this agreement temporarily alleviates the immediate threat of tariffs, the situation with China remains unresolved. A 10% increase in tariffs on Chinese imports is scheduled to take effect on Tuesday as the U.S. continues to address trade imbalances and other related concerns.
Read more about the evolving trade dispute with Canada here.