Trump pauses tariffs on Mexico and Canada
Just hours before they were scheduled to take effect, US President Donald Trump paused the implementation of sweeping tariffs on Canada and Mexico.
Over the weekend, Donald Trump ordered sweeping tariffs on goods from Mexico, Canada, and China in an attempt to curb the flow of fentanyl and illegal immigrants into the United States – sparking what has been described as a potentially escalating trade war.
However, just hours before they were due to come into force, the US president and President of Mexico, Claudia Sheinbaum, reached an agreement to postpone tariffs for a month, and the two agreed to hold trade and security talks.
A similar deal has been reached with Canada and Prime Minister Justin Trudeau.
According to a report from the Financial Times, Trudeau has agreed to send "10,000 frontline personnel" to the border to "stop the flow of fentanyl" in exchange for the US delaying the 25% tariffs it had threatened to apply on Tuesday.
Although the agreement prevents an immediate trade war, it raises questions about how the two nations, whose supply chains are closely intertwined following decades of free trade, will interact in the future.