US President Donald Trump on Monday agreed to a 30-day pause in his tariff threats against Mexico and Canada, as America's two largest trading partners took steps to assuage his concerns about border security and drug trafficking, AP reports, UNN writes.
Details
"The pauses provide a cooling-off period after several tumultuous days that brought North America to the brink of a trade war that risked destroying economic growth, sparking a sharp rise in prices, and ending two of the United States' most important partnerships," the publication writes.
I am very pleased with this initial result, and the tariffs announced on Saturday will be suspended for 30 days to see if a final economic agreement with Canada can be structured. JUSTICE FOR ALL!
Canadian Prime Minister Justin Trudeau tweeted on Monday afternoon that the pause would be made "while we work together," saying his government would appoint a "fentanyl czar," list Mexican cartels as a terrorist group, and launch a "Canada-US Joint Strike Force to Combat Organized Crime, Fentanyl, and Money Laundering.
Trudeau: US suspends tariffs on Canadian imports04.02.25, 00:12
The pause followed a similar move with Mexico, which allows for a period of negotiations on drug smuggling and illegal immigration. The 10% tariffs that Trump imposed on China are still scheduled to go into effect on Tuesday, although Trump was scheduled to speak with Chinese President Xi Jinping in the next few days.
China retaliates against the US: new duties on energy and imported goods04.02.25, 07:58
"While the trade war that investors, companies, and political leaders feared is now less likely, that doesn't mean the drama surrounding Trump's tariff threats is over. Canada and Mexico have bought some time, but Trump could easily re-impose his tariffs and is already planning to announce taxes on imports from the European Union," the publication notes.
All this, as indicated, leaves the global economy in uncertainty as to whether the crisis has been averted or whether a possible catastrophe could still occur in the coming weeks.
Addendum
On Saturday, Trump ordered 25% tariffs on imports from Mexico and Canada, as well as 10% tariffs on Canadian oil, natural gas, and electricity. The US president had repeatedly announced these steps, but they still shocked many investors, lawmakers, businesses, and consumers.