As both nations take steps to address issues raised by US President Donald Trump about border security and drug trafficking, the US suspended its planned taxes on Canada and Mexico for 30 days. Following contracts on new security measures and negotiations between the three states, the decision was made.
Trump made the temporary suspension known, saying,” I am very happy with this initial results, and the Taxes announced on Saturday may become paused for a 30-day time to see whether or not a last Economic deal with Canada can be structured. FAIRNESS FOR ALL”!
Even read: US halts levies on Canada, Mexico for 30 days after Trump speaks to Justin Trudeau, and Claudia Sheinbaum
Why did the US block tariffs on Canada and Mexico?
Canada’s safety commitments
The pause comes after Canada pledged to put in place a$ 1.3 billion border plan to stop fentanyl from entering the US. Trump said the program of reinforcing the Border includes “new helicopters, systems and workers, improved cooperation with our British companions, and increased resources to stop the flow of fentanyl”.
Trump stated on Truth Social that” Canada has agreed to guarantee we have a stable North Border, and to finally put an end to the fatal blight of medications like Fentanyl that have been pouring into our Country, killing hundreds of thousands of Americans, and destroying their families and communities all across our State.”
Justin Trudeau, the prime minister of Canada, confirmed the details and stated on X that” I only had a great call with President Trump. Canada is implementing our$ 1.3 billion border plan—reinforcing the frontier with new helicopters, systems and officers, enhanced coordination with our American companions, and increased solutions to stop the flow of fentanyl”.
Trudeau also announced additional measures, including appointing a Fentanyl Czar, listing Mexican cartels as terrorist organizations, and launching a Canada-US Joint Strike Force to target organized crime, fentanyl trafficking, and money laundering. Canada will invest$ 200 million to support these efforts.
Mexico’s military deployment
After speaking with Mexican President Claudia Sheinbaum, Trump also made a similar 30-day pause on tariffs for Mexico. Under the agreement, Mexico will deploy 10, 000 soldiers to the US-Mexico border to curb fentanyl smuggling and illegal migration while officials continue discussions.
What about China?
Although the tariff suspensions provide temporary relief, the situation remains uncertain. If no definitive agreements are reached, Trump has stated that tariffs could be reinstated. A 10 % tariff on China is still expected to go into effect on Tuesday, with Trump expected to discuss the matter with Chinese President Xi Jinping in the coming days.
Meanwhile, Trump indicated that more import taxes could be coming against China:” If we can’t make a deal with China, then the tariffs will be very, very substantial”, he told reporters gathered on Monday.
