After calls with Mexico's Sheinbaum and Canada's Trudeau, Trump halts?tariffs on neighbours

The tariff war between the US and its two next-door neighbours, Canada and Mexico, may have been averted—at least for now—as Donald Trump has agreed to pause it for one month. Trump, who had earlier promised to impose tariffs of 25% on Mexico and Canada, agreed to the pause after the two countries committed to working with the US on reducing immigration and drug trafficking.

CREDIT: AP

Trump gets border deals with Canada, Mexico

Trump, who had telephonic conversations with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau, said they accepted his demand for tightened border measures against the flow of migrants and the drug fentanyl into the US.

As part of the deal, Canada will also suspend the retaliatory tariffs it had announced for 30 days, and PM Trudeau committed to a $1.3 billion border security plan, which includes deploying additional personnel, upgrading technology, and appointing a fentanyl czar.

CREDIT: REUTERS

Similarly, the Mexican President also agreed to send 10,000 troops to the US-Mexico frontier to crack down on illegal immigration and drug trafficking into the US.

How Canada and Mexico responded to Trump's tariffs

Mexico and Canada are not just the only two countries that share a land border with the US but also two of its biggest trade partners.

Trump's announcement to impose 25 per cent tariffs on all Canadian and Mexican imports had nearly derailed bilateral ties, with the two countries also announcing retaliatory tariffs and other measures.

CREDIT: AP

Also read:?Annexing Canada, buying Greenland, seizing Panama Canal, renaming Gulf of Mexico: New world order according to Trump

Canadian Prime Minister Trudeau and other leaders had pushed for 'Made in Canada' goods in retaliation for the US tariffs.

Ontario, Canada's most populous province, took matters one step further and announced that American companies will be banned from government contracts.

CREDIT: AP

This includes the cancellation of a $68 million contract with Elon Musk's Starlink.

Retaliatory measures put on hold?

However, following the 30-day pause, Ontario said the retaliatory measures have also been put on hold.

"Make no mistake, Canada and Ontario continue to stare down the threat of tariffs," Ontario Premier Doug Ford said.

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