Tariff War: Trump Pauses Canada, Mexico Import Tax For 30 Days But No Respite For China

Canada and Mexico have agreed to certain conditions set by U.S. President Donald Trump, effectively halting the tariff war. In separate negotiations, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum agreed with Trump to delay planned tariffs for at least a month. However, tariffs against China are still set to take effect on Tuesday. On Monday, Trump signed an executive order temporarily suspending the imposition of these tariffs.

On February 1, Trump imposed a tariff aimed at pressuring China, Mexico, and Canada to curb illegal migration and dismantle drug networks. "The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA).....President Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country," said the White House in a statement on February 1.

However, Trump has now paused a planned 25% tariff, delaying its implementation until March 4, 2025, to allow further assessment of Mexico’s actions. He also gave a month to Canada to resolve the issue. The pause provides time for US officials to evaluate whether Mexico’s steps are sufficient to resolve the crises at the US-Mexico and Canada borders. If the situation worsens, the President could proceed with the tariffs, said the Trump administration.

The White House has said that over 10 million illegal aliens attempted to enter the United States under Biden’s leadership, including a rising number of Chinese nationals and people on the terror watchlist. "This problem is not confined to the southern border – encounters at the northern border with Canada are rising as well...Gang members, smugglers, human traffickers, and illegal drugs and narcotics of all kinds are pouring across our borders and into our communities," it added.

Meanwhile, the Trump administration has also rolled out its plan to shut down the US Agency for International Development (USAID). The United Nations said that halting of USAID will immediately affect its attempt to save lives across the world.