CANADA and Mexico breathed a sigh of relief after President Donald Trump shelved his punishing tariff plans for 30 days in a last-gasp deal.
The Republican was left celebrating after he managed to secure a stronger border with his two neighbors through a $1.3billion plan and 10,000 troops.
Trump dramatically stopped entering a potential trade war with Canada and Mexico by pausing sweeping 25 per cent tax increases just hours before it was scheduled to be implemented.
Stock markets had gone into a tailspin on Monday as Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau held last-minute calls with Trump.
The duo were left making a desperate bid to end any threat and halt a damaging world trade war.
Trump confirmed he’d decided to pause his plans for a month after both Mexico and Canada promised to keep 10,000 frontline personnel along their American borders.
The aim is to protect the US from illegal immigration and an influx of deadly drugs entering the country.
Trump praised his own negotiating skills by posting on Truth Social after his last call with Trudeau: “As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that.
“I am very pleased with this initial outcome.”
He also said Canada will implement their $1.3billion border plan and reinforce it with new helicopters, technology and personnel.
Trump added that the next 30 days will determine if he goes ahead with the tariffs or if a “final economic deal with Canada can be structured”.
Justin Trudeau later confirmed these changes in alignment with Trump’s wishes.
Mexican President Claudia Sheinbaum also announced her administration and Trump had reached a series of similar agreements.
Sheinbaum said at a news conference she had a “long conversation” with Trump on the phone on Monday.
Among the series of agreements includes Mexico’s immediate action to reinforce the northern border with 10,000 members of the country’s National Guard.
The bolstered security presence will be tasked with preventing drug trafficking from Mexico to the United States, particularly fentanyl.
The United States said it would also commit to working to prevent the trafficking of high-powered weapons into Mexico, the Mexican president said.
“Our teams will begin working today on two fronts: security and trade,” Sheinbaum added.
Trump also gave Sheinbaum 30 days to “achieve a deal” between the two countries.
What is the trade war?
The newly-inaugurated president believes the taxes were “worth the price” to stopping the manufacture and import of the deadly drug fentanyl and ending the “RIPOFF OF AMERICA”.But prices of fruit like avocados and tomatoes and manufactured products like cars or computers are set to be more expensive for Americans.A trade showdown could cost families $1,000 (USD) and slow down general growth if prices spike – but the Republican appears ready to risk it with the taxes kicking in Tuesday.Trump slammed those opposing the tariffs saying the US was no longer going to be the “stupid country” that was subsidizing others.He said his tariffs could bring some pain to the economy, but that is the “PRICE THAT MUST BE PAID” to end trade deficits with Canada, Mexico and China.In a post on TruthSocial on Sunday, he said: “MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS!!Trump said he would slap a 25 per cent tariff on all imports from Canada and Mexico and add another 10 per cent tariff on to Chinese trade.Energy, like oil and natural gas, imported from Canada was also only hit with a 10 per cent tariff.But soon Mexico and Canada announced condemnatory retaliatory tariffs on the US.Mexican President Claudia Sheinbaum ordered the mysterious “Plan B” to go into effect which “includes tariff and non-tariff measures” in a lengthy X post.She said that her government sought dialogue over confrontation with the US – but now Mexico has had to respond with similar force.
He replied on Truth Social: “I just spoke with President Claudia Sheinbaum of Mexico.
“It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican soldiers on the border separating Mexico and the United States.
“These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrant into our country.
“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two countries.”
Earlier on in the day, Mexican, Canadian and Chinese leaders all scrambled to retaliate at the President after he signed an executive order over the weekend that would allow tariffs to start on Tuesday.
Canada responded by imposing a 25 per cent tariff on more than $100 billion of US goods.
While China vowed to sue the United States with the World Trade Organization.
TRADE WAR BREWING
Meanwhile, President Trump had two conversations with Canadian Prime Minister Justin Trudeau, hours before the US tariffs on Canada are set to go into effect.
The two leaders spoke on the phone early Monday – talks a senior Canadian government official told The New York Times “were not optimistic.”
However, Trump told CNN their follow-up conversation went “very well.”
But when asked if the tariffs against Canada will still go into effect on Tuesday, the president said, “Watch.”
The tariffs against Canada include a 25% tax on Canadian imports, though energy products, such as oil and natural gas, will only be subject to a 10% levy.
President Trump acknowledged that the tariffs would “bring some pain to the economy” but said it is the “price that must be paid.”
Trump said he also plans to speak with China perhaps over the next 24 hours.
The president warned that if the two countries can not strike a deal, China’s tariffs will “be substantial.”
Source : https://www.the-sun.com/news/13443367/trumps-tariffs-mexico-delayed-a-month/