Trump Pauses Mexico Tariffs for 30 Days After Security Deal/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump agreed to pause tariffs on Mexico for 30 days after Mexican President Claudia Sheinbaum pledged to deploy 10,000 National Guard troops to stop drug trafficking. Meanwhile, tariffs on Canada and China will proceed Tuesday, fueling concerns of a broader trade war. Stock markets reacted with caution, as uncertainty looms over Trump’s future trade policies.
Trump Pauses Mexico Tariffs, But Canada & China Still Face Import Taxes
Quick Looks:
- Mexico gets a 30-day tariff pause after agreeing to boost border security.
- 10,000 Mexican troops will deploy to fight fentanyl & drug smuggling.
- Trump still plans tariffs on Canada (25% on goods, 10% on energy) & China (10%).
- Stock markets opened lower, fearing inflation and global trade disruption.
- Trump targets Canada, claiming it restricts U.S. banks & enables drug trafficking.
- White House denies a trade war, calling it a “drug war” instead.
- Trump threatens more tariffs on the EU, warning of future trade battles.
Trump Pauses Mexico Tariffs for 30 Days After Security Deal
Trump & Sheinbaum Strike Deal: Tariffs on Hold for Mexico
Mexico Avoids Tariffs (For Now)
- Deploying 10,000 National Guard troops to secure the U.S.-Mexico border.
- Stepping up fentanyl crackdowns to curb drug trafficking.
- Negotiating further trade & security agreements with the U.S.
“Mexico will reinforce the northern border immediately,” Sheinbaum posted on X (formerly Twitter).
Trump’s Tariff War Moves Forward for Canada & China
- Canada: 25% tariffs on all imports, plus 10% tax on energy exports.
- China: 10% tariff due to its role in fentanyl production and trade imbalances.
Trump reiterated his frustration with Canada, posting:
“Canada doesn’t even allow U.S. banks to do business there. What’s that all about?”
He linked the tariffs to border security concerns, saying:
“Hundreds of thousands of Americans have died from drugs pouring through Mexico and Canada.”
Markets & Economists React to Trump’s Trade Strategy
- Stock markets opened lower, as investors worried about inflation & trade disruptions.
- Economists warn tariffs could slow growth, potentially keeping interest rates high.
- White House insists this isn’t a trade war, calling it a “drug war” instead.
White House economic adviser Kevin Hassett defended the tariffs:
“Read the executive order—this is about stopping drug trafficking.”
However, analysts argue Trump’s own rhetoric has focused more on trade imbalances than drug enforcement.
Will More Tariffs Follow? Trump Hints at EU Import Taxes
Trump hinted at future tariffs on the European Union, saying:
“More tariffs are coming soon.”
His past trade battles with the EU included steel & aluminum tariffs in his first term. EU leaders are preparing countermeasures, warning a trade war could escalate globally.
What’s Next?
- Mexico has 30 days to prove its security measures work before tariffs resume.
- Canada & China face immediate tariffs, likely triggering retaliation.
- Trump may expand tariffs to the EU, raising fears of a full-scale global trade war.
For now, the trade battle continues, with Mexico temporarily spared but Canada and China still in Trump’s crosshairs.
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