After Mexico, Trump holds off on Canada tariffs but keeps pressure on China

(Originally posted on : Invezz )

US President Donald Trump has agreed to pause the implementation of planned tariffs on imports from Canada for at least 30 days, Canadian Prime Minister Justin Trudeau announced on Monday.

The decision comes just hours after Mexico’s President Claudia Sheinbaum also secured a similar pause by committing to measures aimed at curbing fentanyl trafficking into the United States.

No agreement has been reached for China, which faces a 10% tariff. A White House spokesperson said Trump would not speak with Chinese President Xi Jinping until later in the week.

Trump warned of the possibility of further tariff increases on Beijing, stating, “China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher.”

Trump’s tariff actions and reactions

On Saturday, Trump announced his intent to impose 25% tariffs on imports from Mexico and Canada, alongside 10% tariffs on goods from China.

Additionally, a 10% tariff on energy resources from Canada was also planned. In response, Trudeau warned that Canada would retaliate with 25% tariffs on $155 billion worth of U.S. goods.

However, following discussions between Trump and Trudeau, the planned tariffs on Canadian goods have been paused for a month.

In a tweet, Trudeau stated, “I just had a good call with President Trump,” signaling progress toward an agreement.

Justin Trudeau

@JustinTrudeau

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I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…

3:06 am · 4 Feb 2025

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Canada’s border deal to stop fentanyl

The pause in tariffs was linked to Canada and Mexico agreeing to take steps to prevent the trafficking of fentanyl—a synthetic opioid responsible for a significant number of overdose deaths in the US.

Trump, in a Truth Social post on Monday, highlighted Canada’s pledge to strengthen border security to combat fentanyl smuggling.

“Canada has agreed to ensure we have a secure Northern Border and to finally end the deadly scourge of drugs like Fentanyl that have been pouring into our Country,” he wrote, calling the initial agreement a positive step.

Trudeau stated that Canada will appoint a “Fentanyl Czar” to lead efforts in tackling drug trafficking.

The country is implementing a $1.3 billion border security plan, which includes:

• Deploying new helicopters, technology, and personnel
• Enhancing coordination with US authorities
• Increasing resources to curb the fentanyl movement
• Mobilizing nearly 10,000 frontline personnel to monitor the border

Mexico’s commitment and tariff Pause

Earlier on Monday, Trump also agreed to pause tariffs on Mexican imports, after President Sheinbaum pledged to deploy 10,000 soldiers to Mexico’s northern border to help stem the flow of fentanyl.

The move came as data from US authorities showed that the vast majority of fentanyl seized at the US border originates from Mexico.

In 2024, over 21,100 pounds of fentanyl were confiscated at the US-Mexico border, compared to only 43 pounds at the US-Canada border.

Trump indicated that the tariffs would be paused for 30 days to allow negotiations for a final economic deal with Canada. “FAIRNESS FOR ALL!” he wrote, emphasizing the need for a long-term solution.

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