Canada, Mexico, US Pause Trade War In North America, Trump Seals Deals
Three North American countries; Canada, Mexico and the United States, US which had planned to begin trade war with missiles of heavy taxations or tariffs today Tuesday February 4, 2025 have paused the intending war for 30 days to enable both parties cement the deals President Donald Trump entered with Canadian Prime Minister, Justin Trudeau and Mexico President, Claudia Sheinbaum Pardo after the leaders of the North American countries had phone conversation almost throughout on Monday.
Canadian Prime Minister, Justin Trudeau in a press statement issued late hour on Monday, said he had had phone talks with President Donald Trump and both agreed to pause the new tax laws for 30 days.
In a new deal with President Donald Trump, Trudeau and Pardo agreed to send 10,000 security operatives each from Canada and Mexico to secure and strengthen their borders’ security with the US to control the inflow of fentanyl into the US.
Mexico President, Claudia Sheinbaum Pardo during the phone conversation meetings, said she told President Donald Trump that most of the guns used to commit crimes in her country are imported into the country from the US, demanding President Trump to also tighten US security against importation of illegal firearms into Mexico.
Sheinbaum said in a tweet that, in a conversation with President Donald Trump, Mexico agreed to fortify its border with 10,000 national guard troops to try to block the flow of drugs, especially fentanyl, across the border.
It would be recalled that two weeks into his second term, President Donald Trump had launched the United States into a new trade war.
He ordered new tariffs on imports from Canada, Mexico and China — the three largest US trading partners — prompting retaliatory tariffs and vows of countermeasures on US goods.
Trump has also threatened further tariffs on other countries especially EU countries, causing a heavy concern from members of the European countries who have been talking against the intending the heavy burden tariffs of President Donald Trump the negative effects the action will cause both the European countries and the US.
Trump in a confirmation message on his social media handles, said that the US will pause tariffs on Mexico for a month. “We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico,” he added.
Trudeau had announced Saturday night that Canada would begin imposing 25% tariffs on more than $100 billion of US goods in response to US tariffs.
In another economic crisis, Elon Musk said overnight on Sunday that he and Trump are in the process of shutting down the US Agency for International Development, which the administration has discussed putting under the authority of the State Department.
Donald Trump in his statement on Monday, said: “I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States.
These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country. We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico.
I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a “deal” between our two Countries”.
Justin Trudeau in the late hours of Monday, said: “I just had a 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 10,000 frontline personnel are and will be working on protecting the border.
In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- US Joint Strike Force to combat organized crime, fentanyl and money laundering.
I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million. Proposed tariffs will be paused for at least 30 days while we work together”.
Meanwhile, Employees of the United States Agency for International Development based out of the nation’s capital were ordered overnight not to come into the office on Monday and directed to work from home.
“At the direction of Agency leadership, the USAID headquarters at the Ronald Reagan building in Washington, DC will be closed to Agency personnel on Monday, February 3, 2025,” an email sent to staff overnight said, according to a copy obtained by NBC News.
The message said agency personnel who normally work at USAID’s headquarters “will work remotely tomorrow” except for people who perform essential on-site and building maintenance duties. “Further guidance will be forthcoming,” it said.
The email provided no reason for the work-from-home directive, but it comes after tech billionaire Elon Musk, who’s been closely advising President Donald Trump after being tapped to lead his Department of Government Efficiency, said in the early hours of today that he and the president were in the process of shutting down USAID.
Canada Prime Minister, Justin Trudeau had on Saturday during a press conference targeted billions of dollars worth of goods imported from the US with tariffs of 25% to come into force on February 4, 2025 including beverages, cosmetics and paper products.
Saying, another list targeting more than 100 billion canadian dollars worth of goods will be unveiled soon and will be implemented after public consultation which would may include passenger vehicles, trucks, steel and aluminum products, certain fruits and vegetables, beef, pork, dairy products and more coming from US.
Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum spoke by phone Saturday after Trump’s administration imposed sweeping tariffs — 25% on goods from Canada and Mexico, with a lower rate of 10% for Canadian oil, and 10% on imports from China, according to local media.
Trudeau’s office said in a statement that Canada and Mexico agreed “to enhance the strong bilateral relations.” Canadian officials have had extensive dialogue with their Mexican counterparts but a senior Canadian official said he would not go as far to say their tariff responses are coordinated.
“Now is the time to chose products made right here in Canada,” Trudeau posted on X on Sunday. On Saturday, he even suggested Canadians should not buy US products or vacation in the US.
Canada is the largest export market for 36 states and Mexico is the largest trading partner of the US.
Canada and Mexico ordered the tariffs despite Trump’s further threat to increase the duties charged if retaliatory levies are placed on American goods.
“We’re certainly not looking to escalate but we will stand up for Canada,” Trudeau said during the Press Conference on Saturday.
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