President Donald Trump announced a pause on upcoming 25% tariffs on Canada and Mexico for 30 days after both countries threatened to respond in kind.
Trump spoke with Canadian Prime Minister Justin Trudeau, who agreed to fortify the Canadian border in a bid to slow the flow of fentanyl into the U.S. Canada initially announced it would retaliate against Trump’s new tariffs with 25% levies on a raft of U.S. imports, including American beer, wine and bourbon, as well as fruits and fruit juices, including orange juice.
“This is a choice that, yes, will harm Canadians, but beyond that, it will have real consequences for you, the American people,” Trudeau said to American citizens. “As I have consistently said, tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities.”
A 25% tariff on Canadian imports would mean a massive hike in crude oil prices, beef, pork, grains, potatoes and canola oil.
Trudeau addressed the call on a post on Elon Musk’s X platform.
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…
— Justin Trudeau (@JustinTrudeau) February 3, 2025
Trump also struck a deal with Mexican President Claudia Sheinbaum; in return for Mexico reinforcing the northern border with troops, the U.S. would limit the flow of guns into the country and hold off on any proposed tariffs for now.
The plunge in the stock market based on Trump’s announcement of 25% tariffs on Mexico and Canada was suddenly reversed when he paused for a month. The market then surged back. This is the first of many vast insider trading opportunities for the Trumpsters who get advance notice…
— Ralph Nader (@RalphNader) February 3, 2025
However, the Trump administration isn’t backing down on its latest 10% tariffs on Chinese imports—and Beijing isn’t playing nice either.
In a brisk counterstrike, China has slapped retaliatory tariffs on a mix of American goods, hitting coal and liquefied natural gas with a 15% hike. In comparison, crude oil and agricultural machinery now face a 10% duty.
As U.S. President Donald Trump hits Chinese imports with 10% tariff, renowned economist Jeffrey Sachs has a warning: "Protectionist economies don't thrive… the first loser will be the U.S." What is needed is a win-win relationship. #US #China #tariffs #DonaldTrump #economy pic.twitter.com/Kl2jgz6Ubv
— First Voice (@decameronshow) February 3, 2025
Steven Leung of Singapore-based brokerage UOB Kay Hian, said the move was entirely expected. “It’s just part of the game,” he told Reuters. “China is flexing its muscles to gain leverage before stepping into negotiations. But make no mistake, they’re still ready to talk.”
