WASHINGTON: U.S President Donald Trump announced a temporary reprieve on Monday, calling off the imposition of significant tariffs on Mexico and Canada. In exchange, the two neighbouring countries agreed to a 30-day period of cooperation on border security and crime prevention.
U.S. President Donald Trump suspended his threat of steep tariffs on Mexico and Canada on Monday, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighbouring countries.
Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum said, they had agreed to bolster border enforcement efforts in response to Trump’s demand to crack down on immigration and drug smuggling. That would pause 25% tariffs due to take effect on Tuesday for 30 days.
Canada agreed to deploy new technology and personnel along its border with the United States and launch cooperative efforts to fight organized crime, fentanyl smuggling and money laundering.
Mexico agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal migration and drugs.
“As President, my foremost duty is to protect the safety of every American, and I am committed to fulfilling that promise. I’m truly encouraged by these early results,” Trump shared on social media.
The agreements forestall, for now, the onset of a trade war that economists predicted would damage the economies of all involved and usher in higher prices for consumers.
After speaking by phone with both leaders, Trump said “he would negotiate economic agreements with its two largest trading partners over the next month, with US trade relationships closely tied to its two largest partners”.
On the other hand, US President Donald Trump and Canadian Prime Minister Justin Trudeau have telephonic contact twice a day in this regard.
