- Trump stops 25% of tariffs in Canada for 30 days after the fructifers conversations.
- Trudeau accepts efforts against fentanyl smuggling, among others.
- Trump says that patients with economic eyes with two larger business partners.
The president of the United States, Donald Trump, put his plan for high tariffs in Mexico and Canada on Monday, since the two neighboring countries promised to strengthen the control efforts of border and crimes.
American tariffs on China must still be in force in a matter of hours.
Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum said they had agreed to strengthen border application efforts in response to Trump’s demand to take energetic measures against immigration and drug smuggling. That would pause 25% of tariffs that will take effect on Tuesday for 30 days.
Canada agreed to deploy new technologies and personnel along its border with the United States and launch cooperative efforts to combat organized crime, fentanyl smuggling and money laundering.
Mexico agreed to reinforce its northern border with 10,000 members of the National Guard to stop the illegal migration flow and drugs.
The United States also promised to avoid trafficking in high -power weapons to Mexico, said Sheinbaum.
“As president, it is my responsibility to guarantee the security of all Americans, and I am doing exactly that. I am very satisfied with this initial result,” Trump said on social networks.
The agreements that prefer, for now, the beginning of a commercial war that economists predict damaging the economies of all involved and introduce the highest prices for consumers.
After talking on the phone with both leaders, Trump said he would try to negotiate economic agreements during the next month with the two largest US business partners, whose economies have been closely intertwined with the United States since a historic free trade agreement was reached in 1990s.
China’s rates are still planned
This agreement has not emerged for China, which faces 10% rates that are prepared to start at 12:01 am et on Tuesday (0501 GMT). A White House spokesman said Trump would not talk to Chinese President Xi Jinping until later in the week.
Trump warned that he could further increase tariffs in Beijing.
“With luck, China will stop sending us fentanil, and if they are not, the tariffs will be substantially higher,” he said.
China has called the problem of Fentanilo América and said it would challenge tariffs in the World Trade Organization and take other countermeasures, but also left the door open for conversations.
The last turn in the saga sent the Canadian dollar flying after falling to its lowest in more than two decades. The news also gave us the futures of the stock index an elevator after a day of losses in Wall Street.
The industry groups, fearful of the interrupted supply chains, welcomed the pause.
“That is a very encouraging news,” said Chris Davison, who runs a commercial group of Canola Canola producers. “We have a highly integrated industry that benefits both countries.”
Trump suggested on Sunday that the European Union of 27 nations would be its next goal, but did not say when.
EU leaders at an informal summit in Brussels on Monday said Europe would be prepared to defend themselves if the United States imposes rates, but also requested reason and negotiation. The United States is the EU’s largest trade and investment partner.
Trump hinted that Great Britain, who left the EU in 2020, could be tariffs.
Trump recognized during the weekend that his tariffs could cause a short -term pain to US consumers, but says they are necessary to curb immigration and narcotic traffic and stimulate national industries.
The rates as originally planned would cover almost half of all imports from the USA and would require the United States to double more of their own manufacturing output to cover the gap, an unfeasible task in the short term, they wrote ING.
Other analysts said that tariffs could take Canada and Mexico to the recession and trigger the “stagflation”: high inflation, stagnant growth and unemployment high) at home.
