US pauses tariffs on Mexico, Canada

The US suspended the 25% tariff on imports from Canada and Mexico for 30 days after President Donald Trump spoke with the leaders of the two countries yesterday.

Canadian Prime Minister Justin Trudeau had a phone call with Trump on Monday and agreed to deploy new technology and personnel along its border with the US and collaborate on fighting organized crime, fentanyl smuggling, and money laundering.

Before Trump spoke with Trudeau, he connected with Mexico’s President Claudia Sheinbaum.

According to an agreement between the two countries, Mexico will send 10,000 National Guard troops to its northern border to curb illegal migration and drug trafficking. In exchange, the US will prevent the flow of high-powered weapons into Mexico.

The last-minute pause on tariffs is a relief to many US business owners who had opposed the move. The hikes would’ve ignited a North American trade war, and the consequences would’ve potentially passed on to consumers.

The two US neighbors were preparing to impose tariffs on US imports.

Meanwhile, a 10% tariff on imports from China still went into effect today.

Last year, Mexico, Canada, and China accounted for 42% of total US imports, which totaled about $1 trillion in goods.