U.S. President Donald Trump agreed on February 3rd to pause the tariffs he was threatening Mexico with for 30 days in a deal made with Mexican President Claudia Sheinbaum, amid concerns of a trade war.
Sheinbaum offered to send 10,000 Mexican National Guard troops to the border to stem the flow of fentanyl into the United States. Trump also made an agreement with Canadian Prime Minister Justin Trudeau to enact a similar break for the tariffs on Canada, also pausing them for 30 days after a deal on cooperation with border security.
“Proposed tariffs will be paused for 30 days while we work together,” Trudeau said Monday after a call with Trump.
The tariffs against China aren’t on hold, and have already gone into effect.
In response to the threats, the stock market has reacted accordingly. After the tariff announcement, stocks dipped considerably, but improved again when agreements were worked out between Canada and Mexico.
Trump has repeatedly claimed over social media that Canada has not done enough to cooperate with the US, despite the long standing partnership that they have. Trump complained on Truth Social, his social media platform, about their supposed lack of teamwork.
“Canada doesn’t even allow U.S. Banks to open or do business there,” he posted. “What’s that all about? Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the U.S. from drugs pouring through the Borders of Mexico and Canada.”
That being said, the majority of drugs come from Mexico (24,148 lbs), with only 0.2% of fentanyl (43 lbs) seized coming from the Canadian border.
Trump has stated that US citizens might “feel some pain” due to his proposed tariffs on foreign goods. Canada is facing a 25% tariff on imported goods, with 10% on energy resources like gas. Mexico is up against 25% as well, and China will see 10% in relation to their role in the production of fentanyl, according to the White House.
