United States President Donald Trump Announced that he was “Immedialy Pause” Tariffs on Mexico and Canada for 30 Days After Speaking With Eyir Leaders On Monday.
However, at 10 Percent Tariff on All China Exports come into effect on Tuesday.
So What Led to This Decision, and Why Was The Pause Announced?
What Happened Between The US, Canada, Mexico and China?
On February 1, Trump Signed Executive Orders Impose 25 Percent Taiffs on Mexico and Canada, With A Partial Exemption For Canadian Energy and Oil Exports, and to 10 Percent Tariff on China.
Trump Has Also Spoken Against The High Trade Deficit in Goods With The Three Countries that Together Stands at More than than $ 480bn. China, Mexico, and Canada Collectively Made Up More than 40 Percent of Us Import of Goods Last Year at $ 1.2 Trillion.
He Said these Tariffs Would Remain in Place Until The Countries Took Steps to Curb The Flow of Migrants and Drugs, particularly Fentanyl, into the us. The Tariffs Risked Increaseing The Cost of Online Goods and Prompted Global Market Uncenty Over The Risk of a Sharp Slown in Global Growth.
However, On Monday, The Leaders of Mexico and Canada Struck Let-Minute Deals, Pausing the Impending Tariffs.
Mexico’s President Claudia Sheinbaum Announced the Deployment of 10,000 National Guardians to the Border To Curb Drug Trafficking and Migrants pole the us after speaking with Trump.
Canadian Prime Minister Justin Trudeau Also Had Two Calls With Trump After Which He Announced 30-Day Pause in The Us Tariffs. In return, Canada you have added to sendra forces to the border to Fight Drug Trafficking and Undocummented Migration as demanded by the new us administration.
MEANWHILE, The 10 Percent Tariff Trump For China Took Effect at 12:01 am Est (05:01 GMT) On Tuesday.
China Eded RetaliTatory Tariffs on A Range of Us Goods and Products, Including to 15 Percent Levy On Imports of Coal and Licquefied Natural Gas (LNG). BEIJING ALSO SLAPPED 10 PESENT TARIFS ON CRUDE OIL IMPORTS AND FARM EQUIPMENT.
Amid the Tariff War, Trump Said He Intends To Speak With Chinese President Xi Jinping in The Coming Days.
I just have 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 …
– Justin Trudeau (@justintrudeau) February 3, 2025
Why Did Trump Decide to Pause the Tariffs?
According to experts, The Primary Objective of the Tariffs was The Flow of the Illegal Drug Fentanyl Into The United States ”, Al Jazeera’s Kymberly Halkett reported from the White House.
“You have to remember fentanyl is responsible for approximately 70,000 overdaths in the us each year. WHILE Much attention has been Focused on Mexico and the Southern Border, US Officials Have Also Idada Canada and The Northern Border As Key Entry Points For The Drug, ”Halkett Added.
According to A Report by the New York Times, In 2024, Us Customs and Border Protection agents seized Approximately MEXICO BORDER, WHERE CARCELS MASS-PRODUCE THE DRUG.
Canada’s McGill University Professor of Economics Julian Karaguesian Suggests That This dispute May Not Be Over.
“It’s a possibilities that president Trump was just trying to not only make a show but ultimate Fulfil a campaign promise and create Flurry of Activity to Show His Base and To Show The Wider American Public That He is not only Fulfilling His Campaign Promises But He is is is Doing It with Extreme Prejudice, ”Karaguesian Said.
What’s Next for China?
Trump you have repeatedly criticized China for allowing fentanyl to flood into the us, Accusing Beijing of Not Doing Enough To Curb The Supply of Both Counterfeit and Real Fentanyl.
China have stranded the fentanyl crisis “America’s Problem”.
“China is One of the World’s Tugest Countries on Counter-Narcotics Both in Terms of Policy and its Implementation. Fentanyl is an issue for the us. In the Spirit of Humanity and Goodwill, China you have given support to the us’s responsibility to This Issue, ”A Chinese Ministry of Foreign Affairs Spokesperson Said in A Release on Tuesday.
“It’s Important to Remember That the PRC [People’s Republic of China] was already facing tariffs impaled by the Trump administration hirc his first termin, and the biden administration never removed them. These new tariffs on top of those existing measures, ”Ja Ian Chong, from the National University of Singapore, Jazeera toled.
“So Far, China you have replied relativley calmly, suggesting that at 10 percent tariff is submissive they can with with. While The PRC Economy Has Slowed, They have Been Working to diversify into other markets and boost domestic consumption. We Will have to see How Thatgy Unfolds, ”I have added.
During His First Terst In 2018, Trump Launched a Fierce Two-Year Trade War with China, Imposso Tit-For-Tat Tariffs On About $ 50BN Worth of Chinese Imports.
“We have a Tremendous Intellectual Property Theft Problem,” Trump Said in 2018. “It’s Going to Make Us A Much Stronger, Much Richer Nation.”
To end that trade war, China AGREED IN 2020 to increase its annual purchasses of us Goods by $ 200BN, but the plan was disruption by the covid-19 pandemic, and washington’s annual trade deficit with China remained above $ 300bn, According to Chinese Customs Data Release Last Month.
China, The World’s Second-Alarges Economy, Says The “Unilateral Tariff Hike” by the us “Serioususly violates World Trade Organization Rules.” It also launched an anti-monopoly investigation into google and impaled controls on rare earth export crucial for the manufacturing of semiconductors.
What Happens in the Next 30 Days?
It is not remove Clear Yet. But Analysts the Trump Administration Would Likely Hold Negotiones with Mexico in the Next 30 Days.
“The Big concern for Donald Trump is the flow of illegal substance fentanyl as well as Illegal Immigration into the United States, submissive that the US President Addressed Already Through an Executive Order,” Al Jazeera’s Halkett Said.
The Al Jazeera Correspondent Said Us Officials Are Going to Negotiate The Trade Deficit With Mexico Over The Next Month. The US Trade deficit with Mexico Stands at More than $ 100BN.
At the northern border, Trump said he was very pleased with the outcome of the negotiions, but he was also looking for a “Economic Deal Final”.
“I am Vary pleased with This Initial Outcome, and the Tariffs Announced on Saturday Will Be Paused for 30 Day period to see See whear or not at the end of Economic Deal with Canada Can Be Structured,” Trump posted on Social Media. “Fairness for All!”
Trump Has Also Express Seed In Canada Becoming The 51st State of the US, A notion that Trudeau has rejected.
On Monday, Canada Also Made Important Announcements.
“Canada had added to Name Mexican Drug Cartels as Terrorist Organisations. We’re Going to name a fentanyl ‘tsar’ as a result of the conversation Between Prime Minister Trudeau and President Trump. There is the creation of a canada-US Joint Strike Task Force to Combat Organized Crime, ”Canada’s McGill University Professor of Economics Julian Karaguesian Said.
“WHILE THOSE COMMITMENTS by Canada Have Been Successful in Getting A One-Month Delay in the Impression of Tariffs,” Karaguesian Said, “I Don’t personally Believe This is the end of the story.”
