Trump’s looming 25% tariffs against Mexican and Canadian imports have been delayed by one month. On Monday, February 3, US President Donald Trump had two separate dialogues with leaders from each country—with Mexican President Claudia Sheinbaum in the morning and Canadian Prime Minister Justice Trudeau in the afternoon and evening. By the end of the day, the massive tariffs on the neighbors of the US, slated to begin the following day on February 4, had been delayed by one month.
Following a conversation between Mexican President Claudia Sheinbaum and US President Donald Trump, Sheinbaum announced that Mexico had successfully delayed Trump’s 25% tariff on all Mexican imports by one month. Sheinbaum reported that the discussion was “good” and reflected a “great respect for our relationship and sovereignty.”
Both countries reached several agreements in order to delay tariffs. Mexico will reinforce the US-Mexico border with 10,000 members of its National Guard to prevent the trafficking of drugs, particularly fentanyl. According to Sheinbaum, the US has committed to preventing the traffic of high-powered guns into Mexico. “Our teams will begin working today on two fronts: security and trade,” Sheinbaum wrote on X.
Tariffs against Canada were also delayed following a conversation between Trump and Trudeau. After a “good call with President Trump,” the Canadian Prime Minister announced that Canada would implement a “border plan” worth USD 6.89 billion, which would entail “reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl.” This plan would send 10,000 “frontline personnel” to “protect” the US-Canada border.
China to file WTO complaint over tariffs
Meanwhile, Trump’s 10% tariffs against Chinese imports are still set to begin at midnight on February 4. Chinese ambassador to the United Nations, Fu Cong, said that China is considering retaliatory measures and that the Asian country was filing a complaint with the World Trade Organization. However, the WTO has been unable to handle many legal challenges as the US has blocked the appointment of judges to its Appellate Body since Trump’s first term.
Trump implemented a “trade war” against China in his first term, beginning in January 2018 when Trump set tariffs and other trade barriers against the Asian country. Biden kept Trump’s tariffs against China in place during his term, even adding additional tariffs on goods such as electric vehicles and solar panels.
Trump posited his tariff policies as part of his “America first” agenda that would bring prosperity to US workers. However, according to economic experts, Trump’s proposed tariffs would have increased costs for working class people, particularly the poorest 20%, while doing little to create jobs in the manufacturing sector of the US.
