"Trump's Tariff Tussle Canada and Mexico Off the Hook, China Still in Crosshairs

Title Trump's Tariff Tussle Canada and Mexico Off the Hook, China Still in Crosshairs

Washington, D.C. — In a surprise move, US President Donald Trump has delayed the implementation of tariffs on exports from Canada and Mexico for a month, while China remains firmly in his crosshairs.

The decision comes after last-minute deals were struck with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau to strengthen border measures against the flow of migrants and the drug fentanyl into the United States. The move is seen as a significant development given the global stock market turmoil that had been sparked by Trump's threat of sweeping 25 percent levies on exports from Canada and Mexico.

A Glimmer of Hope

Trump claimed that after very friendly talks with Sheinbaum, he would immediately pause the tariffs on Mexico. He also announced that his counterpart had agreed to send 10,000 troops to the US-Mexico frontier. Similarly, tensions appeared higher between the United States and Canada, but Trump said in a statement that Canada had agreed to ensure we have a secure Northern Border, and to finally end the deadly scourge of drugs like Fentanyl.

Canada's Commitments

According to Trudeau, Canada would deploy nearly 10,000 frontline officers to help secure the border, list drug cartels as terrorists, appoint a Fentanyl Czar, and crack down on money laundering. While specifics on changes to the Canadian border are unclear, given that authorities already have 8,500 personnel deployed.

China Still in the Firing Line

Despite the reprieve for Canada and Mexico, China remains set to face a further 10 percent duty on top of existing levies. The US president said last-minute talks between Washington and Beijing are underway in a bid to reach an agreement. His spokeswoman Karoline Leavitt told Fox News that there is a plan for him to talk to President Xi in the next 24 hours.

Global Markets React

The news sent shockwaves through global markets, with Wall Street's three main indices falling sharply before clawing back ground after Trump's announcement of the Mexico deal. The London, Paris, and Frankfurt stock markets finished in the red. The White House confirmed that there had been a heck of a lot of talks over the weekend.

A New Era for Trade?

US government figures show that only a minimal quantity of drugs enter via Canada, leading some to question whether this is indeed a drug war. Nevertheless, Trump remains committed to his tariff strategy, which has sparked concerns about a global trade war.

Canada's Response

Canada had vowed to respond strongly to the tariffs. Canadians have booed the US national anthem at sporting events, cancelled holidays in the United States, and boycotted American products. Ontario, Canada's most populous province, on Monday banned US firms from bidding on tens of billions of dollars in government contracts – and dumped a deal with Trump ally Elon Musk's Starlink.

A 51st State?

Trump has upped the pressure recently by calling Canada's existence into question – once again advocating for it to become the 51st US state. This political crisis in the Canadian government led to Trudeau announcing earlier this month that he would resign too, with Canadians now facing elections as early as April.

Mexico's Pressure

Mexico is under heavy pressure to secure its border with the United States as Trump vows a massive crackdown on undocumented migrants.

The Bottom Line

Despite the uncertainty surrounding global trade, one thing is clear Trump remains committed to his tariff strategy. As he returns from a weekend at his Florida resort Sunday, he acknowledged that Americans might feel economic pain. However, the US president insists that the impact will be borne by foreign exporters without being passed on to American consumers – a claim disputed by most experts.

Keywords Tariffs, Trump, Canada, Mexico, China, Global Trade, 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.