US President Donald Trump put on hold the escalating trade war against Canada and Mexico by one month, much to the relief of global markets.
Trump on late Monday agreed to delay 25% tariffs against Mexico for one month after a conversation with Mexican counterpart Claudia Sheinbaum. In return, Mexico will send 10,000 troops to the border to help stop the entry of fentanyl and migration into the US.
Meanwhile, Canadian Prime Minister Justin Trudeau put on hold the $107 billion worth of retaliatory tariff measures after deciding to implement the $1.3 billion border plan while making new commitments to appoint a "Fentanyl Czar". Trudeau said he has also signed a new “intelligence directive” on organised crime and fentanyl.
"It is my responsibility to ensure the safety of all Americans, and I am doing just that," Trump said in a social media post. "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," he said.
The White House has formally delayed the tariffs on Canada and Mexico to March 4, according to Bloomberg News.
These delays in tariffs come just a day after stock markets globally were jolted by a potential trade war.
The US President did not announce a pause on China tariffs, but he has a planned phone call with President Xi Jinping later this week. Tariffs on China is due to take effect at 12:01 a.m. on Tuesday, Washington time. Trump also pledged levies on the EU and key sectors.
Trump's move to impose tariffs on the two nations and China is the most extensive act of protectionism taken by a US president in almost a century, according to Bloomberg. Among the worries was how the US economy would handle the impact of a trade war if tariffs were implemented.
Trump continues to threaten to BRICS countries over any planned common currency is, saying doing so will invite "100% tariffs" on exports to America.
RECOMMENDED FOR YOU
POPULAR