- By Anushka Vats
- Tue, 04 Feb 2025 08:03 AM (IST)
- Source:JND
US President Donald Trump announced a one-month delay in imposing tariffs on imports from Mexico and Canada, following urgent talks with Canadian and Mexican counterparts that led to new agreements aimed at tightening border security. The move came after global markets reacted negatively to fears of a trade war sparked by Trump’s earlier threat of 25 per cent tariffs on exports from both countries.
Just hours before the tariffs were set to take effect, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum negotiated with Trump to secure the delay. The US president confirmed that following "very friendly" talks with Sheinbaum, the US would "immediately pause" the tariffs on Mexico. In return, Mexico agreed to send 10,000 troops to bolster security along the US-Mexico border.
Tensions were higher with Canada, but after two separate discussions with Trudeau, Trump also agreed to delay the tariffs for 30 days. Trump expressed satisfaction with the deal, stating that "Canada has agreed to ensure we have a secure Northern Border, and to finally end the deadly scourge of drugs like Fentanyl that have been pouring into our Country."
I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…
— Justin Trudeau (@JustinTrudeau) February 3, 2025
As part of the deal, Canada pledged to deploy nearly 10,000 frontline officers to secure the border, label drug cartels as terrorists, and appoint a "Fentanyl Czar" to tackle the opioid crisis. However, some critics questioned whether these new measures would significantly change the current situation, given that Canada had already deployed 8,500 personnel as of December.
Meanwhile, Trump’s tariffs on China remain in place, with a 10% increase expected on top of existing duties. Talks between Washington and Beijing are expected in the coming days to avoid further tariff escalations.
Following the announcement, Wall Street rebounded from early losses, though European stock markets remained down. The Canadian dollar and the Mexican peso both weakened against the US dollar, while oil prices surged, despite the limited tariffs on Canada's energy imports.
