"Trump Delays Tariffs on Mexico and Canada, But China Remains a Target

Trump Delays Tariffs on Mexico and Canada, But China Remains a Target

In a surprise move, US President Donald Trump has postponed the start of tariffs on exports from Canada and Mexico to the United States for a month. This sudden shift comes as global stock markets had slumped due to fears of a global trade war sparked by Trump's threat of sweeping 25% levies.

Last-Minute Deals

In an effort to ease tensions, Trump struck deals with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau. The agreements focus on tightening border measures against the flow of migrants and the drug fentanyl into the United States. As part of these deals, Mexico will send 10,000 troops to the US-Mexico frontier, while Canada will deploy nearly 10,000 frontline officers to help secure the border.

The Impact

Global stock markets had initially slumped in response to Trump's tariff threat, but recovered after his announcement of the Mexico deal. The London, Paris, and Frankfurt stock markets ultimately finished in the red.

In a statement, National Economic Council Director Kevin Hassett emphasized that this is not a trade war, but rather a drug war against illegal substances entering the United States. However, US government figures show that only a minimal quantity of drugs enter via Canada.

The Larger Picture

Canada had vowed to respond strongly to the tariffs, with Canadians expressing discontent by boycotting American products and cancelling holidays in the United States. The province of Ontario has even banned US firms from bidding on tens of billions of dollars in government contracts.

Trump's tariff threats have also led to a political crisis in Canada, with Prime Minister Justin Trudeau announcing that he would resign if necessary. Canadians now face elections as early as April.

The Road Ahead

China remains in the crosshairs, with Trump set to impose an additional 10% duty on top of existing levies. The US president has stated that last-minute talks between Washington and Beijing are underway in a bid to reach an agreement. His spokeswoman, Karoline Leavitt, told Fox News that Trump is expected to speak with Chinese President Xi Jinping within the next 24 hours.

As the global economy continues to navigate uncertainty, one thing is clear Trump's unpredictable presidency has left everyone on edge. Will his latest move mark a turning point or just another chapter in this ongoing saga? Only time will tell.

Keywords Trade War, Tariffs, Mexico, Canada, China, Donald Trump, Global Economy

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.