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. Such a conflict could have severely damaged economic growth, driven up prices, and damaged critical relationships between the United States and its neighbours.
“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!”
Read Also: Trump pauses US tariff on Mexico for a month after border agreement
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 on Tuesday. He plans to speak with Chinese President Xi Jinping in the coming days.
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