Trump Suspends 25 Percent Tariffs on Canada, Mexico
US President Donald Trump
US President Donald Trump has suspended his proposed 25 percent tariffs on Canada and Mexico for a month. The decision came ahead of the new tariffs coming into force on Tuesday.
Canada and Mexico have agreed to take steps to improve border security and combat drug trafficking in the meantime. Under the deal, Canada will appoint a 'fentanyl czar' and send 10,000 troops to the Mexican border.
The agreement came after several phone calls between Trump, Canadian Prime Minister Justin Trudeau, and Mexican President Claudia Sheinbaum. Canada and Mexico are the United States' largest trading partners, and both countries have threatened countermeasures along with Trump's tariff plan.
Meanwhile, the announcement of 10 percent tariff on Chinese goods will come into effect today.
Trump's Assurance
President Trump wrote on social media, "New tariffs on Canada suspended. Canada agrees to ensure a secure northern border." He cited Justin Trudeau's tweet, in which the Canadian leader mentioned spending 1.3 billion Canadian dollars on border security.
Trump added: "I'm pleased with this initial achievement and the tariffs announced Saturday will be suspended for thirty days. Let's see if a final economic deal can be reached with Canada."
Justin Trudeau's speech
Justin Trudeau
In addition, Trudeau said, "Efforts to stem the flow of fentanyl will be intensified and a Canada-US joint strike force will be launched to combat organized crime." He also mentioned the signing of new intelligence directives, which will cost $200 million.
Trump to hold talks with Chinese president
Xi Jinping,Donald Trump
The 10 percent tariff that Trump has announced on China is scheduled to come into effect at midnight on Tuesday. In response, China said it would file a complaint with the World Trade Organization.
Image of Uncertainty
The sudden moratorium, hours before the new tariffs were to take effect, brought relief to politicians, but complicated the situation for company CEOs. One of the main concerns of traders is uncertainty. The impact of this uncertainty was seen in the global stock market on Monday.
Trump's sudden decision makes it difficult for CEOs to be certain about what the next four years might hold. Many product manufacturers have shifted from China to Mexico or India in recent years.
However, it is becoming difficult for CEOs to make investment decisions without knowing which country Trump will target next. This is an important issue for employment and economic growth.
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