The US President Donald Trump has agreed to halt his threatened tariffs on Canada and Mexico for 30 days following their commitments to bolster border security and combat drug trafficking.
Following a turbulent few days that threatened to derail North America’s economic development, send prices skyrocketing, and shatter two of the United States’ most important alliances, the pauses offer an opportunity for relaxation.
“I am very pleased with this initial outcome, and 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 posted on social media. “FAIRNESS FOR ALL!”
Canadian Prime Minister Justin Trudeau posted Monday afternoon on social media that the pause would occur “while we work together,” saying that his government would name a fentanyl czar, list Mexican cartels as terrorist groups and launch a “Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.”
A similar move with Mexico that permits a period of negotiations regarding illegal immigration and drug smuggling preceded the hiatus.
Despite Trump’s plans to speak with Chinese President Xi Jinping in the coming days, the 10% tax he placed on China is still due to take effect on Tuesday.
Even though the trade war that businesses, investors, and political leaders feared is now less likely to break out, the drama around Trump’s tariff threats has not ended.
Although Canada and Mexico purchased some more time, Trump could easily extend his tariffs and already has plans to impose levies on EU imports.
Because of all of that, the world economy is unsure if a crisis has been avoided or if a potential disaster is still imminent in the coming weeks.
Trump ordered 25% tariffs on Canadian and Mexican imports on Saturday, along with an additional 10% duty on Canadian power, natural gas, and oil.
Even though the U.S. president has hinted at these actions on numerous occasions, they nevertheless managed to surprise a lot of lawmakers, corporations, investors, and consumers.
According to several studies conducted by the Tax Foundation, the Tax Policy Center, and the Peterson Institute for International Economics, the tariffs may hinder economic growth, reduce incomes, and raise prices.
