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Mexico and Canada Reach Agreement to Enhance US Border Security in Exchange for Tariff Suspension | US News


Canada and Mexico have reached an agreement to enhance border security with the United States in exchange for a 30-day suspension of tariffs.

On Sunday, President Trump announced the introduction of a 25% tax on goods from both neighboring countries.

Mexico was the first to finalize an arrangement with the White House, as President Claudia Sheinbaum indicated that she will be deploying 10,000 National Guard troops to the US border immediately in return for delaying the tariffs.

Mr. Trump noted that the Mexican troops will be “specifically designated” to halt the influx of the synthetic opioid fentanyl into the US, as well as to manage illegal immigration. He indicated that further negotiations would follow.

Ms. Sheinbaum mentioned having a “productive conversation” lasting at least 30 minutes with him just hours before the tariffs were set to take effect.

She also secured a concession from Mr. Trump after expressing the “seriousness” of high-powered weapons crossing the border from the US into the hands of criminal organizations.

“It provides them with firepower,” she commented. “We requested that the US assist our country in stopping this arms trafficking… he agreed.”

Donald Trump as he hosted the 2024 Stanley Cup Champions, the Florida Panthers, at the White House. Pic: Reuters
Image:
Donald Trump welcoming the 2024 Stanley Cup Champions, the Florida Panthers, at the White House. Pic: Reuters

Similarly, Canada has taken action. Prime Minister Justin Trudeau stated that nearly 10,000 frontline personnel “are and will be engaged in securing the border”.

He also announced on X the appointment of a “fentanyl czar,” the classification of drug cartels as terrorists, and that there would be “constant monitoring of the border”.

Additionally, a joint Canada-US strike force will be established to “combat organized crime, fentanyl trafficking, and money laundering,” Mr. Trudeau declared.

Both Trudeau and Trump are likely to view this agreement as a success, with Trump appearing to compel his neighbors to act, and Trudeau managing to avoid sanctions through initiatives that had largely been previously announced in December.

Donald Trump expressed that he was “very pleased with this initial outcome,” and discussions will commence on structuring a “Final Economic Deal” with Canada.

Analysis: Is this all just a facade?

First Mexico, now Canada. In a whirlwind day, it seems that both of America’s closest neighbors have conceded to President Trump.
The impending 25% tariffs on all goods from these nations were set to go into effect at midnight US Eastern time. However, after discussions among the three leaders, the tariffs were suspended.

So what does this mean? Is it a clear demonstration of Trump’s clout? Has his aggressive stance on tariffs effectively worked as a negotiation tactic? Are bullying methods effective?
Perhaps. At least that’s how Mr. Trump intends for it to appear. Comply with my demands, or face consequences.

It’s clear that Mexico and Canada were in a state of urgency this weekend. However, it’s likely that Donald Trump also felt a bit of anxiety upon witnessing Monday’s stock market plunge. Though he claimed disregard for their steep declines, it’s well-known that he is deeply invested in market reactions.

Interestingly, the statement from Canadian Prime Minister Justin Trudeau initially sounded like a new announcement.
“Canada is implementing our $1.3 billion border plan… nearly 10,000 frontline personnel are and will be engaged in securing the border…”

Yet, this isn’t a fresh declaration. Consider the wording: “are and will be”. In essence, ‘we are already executing this plan, Mr. President, but if you prefer a reaffirmation to soothe you, I will oblige…’
All that Justin Trudeau’s statement achieved was reiterating a border strategy he had previously unveiled last December.

Mexico has also been ramping up efforts in combating fentanyl, though it can and probably will take additional actions now.

So was all of this just theatrical over the last 24 hours?

A mere display of brinkmanship from Donald Trump, which could have resulted in a dramatic fallout, but instead left him appearing robust (even as he unsettled much of the developed world) while compelling his closest neighbors to restate their existing plans.

In relation to China, a 10% tariff—on top of those already imposed—is still expected to proceed, although the White House indicated that Mr. Trump is scheduled to speak with President Xi Jinping.

The US president has also remarked that the tariffs of 10% could just be the beginning.

“China ideally will stop sending us fentanyl, and if they fail to do so, the tariffs will significantly increase,” he stated.

China has referred to fentanyl as America’s issue and announced intentions to contest the tariffs at the World Trade Organisation, while also leaving the door open for discussions.

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‘PM walking tightrope between Trump and EU’

What is the UK’s stance on tariffs?

President Trump is averse to trade deficits and aims to avoid importing more goods from a country than what is exported in return, explains Sky’s economics and data editor, Ed Conway.

However, Conway notes that the UK experiences larger trade deficits than the US and is among the few countries where it imports more goods from the US than the US does from it.

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Moreover, since the UK is no longer a member of the European Union, any tariffs imposed on the EU will not impact London.

When questioned about the UK, Mr. Trump stated: “I believe that can be worked out.”

Sir Keir Starmer remarked that it is “early days”.



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