Five things to know to start your Tuesday

Trump paused tariffs on Canada and Mexico, but not China

President Donald Trump has agreed to pause his threatened tariffs on Mexico and Canada for 30 days after both countries took steps to address his concerns about border security and drug trafficking.

The pause comes after a few intense days that nearly pushed North America into a trade war.

“I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured,” Trump wrote on social media. “FAIRNESS FOR ALL!”

Canadian Prime Minister Justin Trudeau responded by saying they would use this time to work together. He announced several specific actions: naming a fentanyl czar, classifying Mexican cartels as terrorist groups, and creating a joint U.S.-Canada task force to fight organized crime, drug trafficking, and money laundering.

The pause with Mexico allows for negotiations about drug smuggling and illegal immigration. However, Trump’s 10% tariff on China is still set to take effect today (Tuesday).

Elon Musk wants to close the US humanitarian aid agency

Billionaire Elon Musk is leading the effort to downsize the federal government and has specifically targeted USAID for closure. According to a Reuters report, Trump wants to merge USAID into the State Department and has “entrusted Elon to oversee the efficiency of this agency.”

The Trump administration is blocking USAID workers from entering their headquarters in downtown Washington DC for a second day, part of a plan to shut down the agency.

The lockout adds to the ongoing chaos at USAID, an agency responsible for distributing billions of dollars in humanitarian aid worldwide. The trouble began when Trump ordered a freeze on most U.S. foreign aid shortly after taking office on January 20.

FEC approved N885bn for 10 major road projects

President Bola Tinubu’s Federal Executive Council (FEC) approved N885 billion for 10 road projects across Nigeria.

At a press conference following Monday’s meeting in Abuja, Works Minister David Umahi explained that these projects aim to upgrade Nigeria’s road networks and bridges. He highlighted several major infrastructure investments, including the reconstruction of three sections of the critical Lokoja-Benin road.

“The project will be carried out in concrete and includes: Obajana to Benin (Section I): N64 billion, Auchi to Edo (Section II): N110 billion, Benin Airport to Edo (Section III): N131 billion. The total cost of this project alone is over N305 billion,” the minister said.

The council also approved N252 billion for the Abuja-Kano highway, which Umahi explained covers two main sections. Section one extends from the Federal Capital Territory boundary to Niger state, adding 5.71 kilometres. Section two covers areas in Kano state with a 17-kilometre expansion.

CBN extended $25,000 weekly FX sales to BDCs

The Central Bank of Nigeria will allow Bureau de Change (BDC) operators to continue purchasing foreign exchange from the Nigerian Foreign Exchange Market until May 30, 2025.

The bank revealed this extension in a circular issued on Monday by its Trade and Exchange Department. The document permits BDCs to keep purchasing forex from authorised dealers under the existing conditions.

The circular, signed by Dr. W. J. Kanya, the acting Director of the Trade & Exchange Department, references an earlier directive from December 19, 2024. That previous directive had granted temporary access to existing BDCs to source foreign exchange, with a weekly cap of $25,000.

Trump invited India’s Modi to the White House

President Donald Trump has invited Indian Prime Minister Narendra Modi to visit the White House next week. The invitation came hours after a U.S. military plane departed to return deported migrants to their home country.

Trump spoke with Modi on January 27, discussing immigration and emphasising the importance of India purchasing more American-made security equipment and establishing fair trade relations.

India sees the United States as a strategic partner in countering China’s global influence. The country hopes to strengthen trade relations, secure more skilled worker visas for its citizens, and avoid the tariffs Trump has previously threatened over India’s high import taxes on U.S. products.

The United States is India’s largest trading partner. Two-way trade between the countries exceeded $118 billion in 2023/24, with India maintaining a trade surplus of $32 billion.