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Trump to pause Canada tariffs for at least 30 days as China levies set to take effect on Tuesday
Donald Trump has pulled back from the brink of a trade war with Canada and Mexico, postponing sweeping new US tariffs on goods from its two closest economic partners by one month.
It is the third time in two weeks the US president has delayed his threatened 25% tariffs on the two countries. China is still set to face additional 10% levy on its exports to the US from Tuesday.
Following talks with the Canadian prime minister, Justin Trudeau, and the Mexican president, Claudia Sheinbaum, on Monday, Trump agreed at the last minute to hold off from imposing new duties on the two countries.
The agreements came on a day of extreme volatility in global financial markets as rattled investors reacted to the prospect of a dramatically escalating dispute involving the world’s largest economies.
The US president had upended US-Mexico ties over the weekend when he announced 25% tariffs and accused Sheinbaum’s administration of engaging in an “intolerable alliance” with Mexican crime groups.
Sheinbaum rejected that “slanderous” accusation, but on Monday morning struck a softer note as she announced “a series of agreements” with Trump after a conversation between the two leaders during which they agreed to pause US tariffs for a month to allow for fresh negotiations.
The Guardian’s Tom Phillips, Richard Partington and Callum Jones report:
Key events
Mexico had agreed to send 10,000 members of its national guard “to prevent drug trafficking from Mexico to the US, in particular of fentanyl”, Sheinbaum said. In return, the US had agreed to work to prevent high-powered weapons crossing the border into Mexico.
Trump confirmed the deal shortly afterwards on his Truth Social network. He said 10,000 Mexican soldiers would be “specifically designated to stop the flow of fentanyl, and illegal migrants into our country”.
Negotiations involving senior Mexican officials, the US secretary of state, Marco Rubio, the US treasury secretary, Scott Bessent, and the US commerce secretary, Howard Lutnick, would take place during the pause, he said.
After two calls with Trump on Monday, Trudeau announced that tariffs would be “paused” for 30 days. “Canada is implementing our $1.3bn 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,” he said in a statement. “Nearly 10,000 frontline personnel are and will be working on protecting the border.”
Trump to pause Canada tariffs for at least 30 days as China levies set to take effect on Tuesday
Donald Trump has pulled back from the brink of a trade war with Canada and Mexico, postponing sweeping new US tariffs on goods from its two closest economic partners by one month.
It is the third time in two weeks the US president has delayed his threatened 25% tariffs on the two countries. China is still set to face additional 10% levy on its exports to the US from Tuesday.
Following talks with the Canadian prime minister, Justin Trudeau, and the Mexican president, Claudia Sheinbaum, on Monday, Trump agreed at the last minute to hold off from imposing new duties on the two countries.
The agreements came on a day of extreme volatility in global financial markets as rattled investors reacted to the prospect of a dramatically escalating dispute involving the world’s largest economies.
The US president had upended US-Mexico ties over the weekend when he announced 25% tariffs and accused Sheinbaum’s administration of engaging in an “intolerable alliance” with Mexican crime groups.
Sheinbaum rejected that “slanderous” accusation, but on Monday morning struck a softer note as she announced “a series of agreements” with Trump after a conversation between the two leaders during which they agreed to pause US tariffs for a month to allow for fresh negotiations.
The Guardian’s Tom Phillips, Richard Partington and Callum Jones report:
What is USAid and why does Trump dislike it so much?
Donald Trump’s administration has confirmed plans to merge the US international aid agency USAid into the state department in a major revamp that would shrink its workforce and align its spending with Trump’s priorities.
The secretary of state, Marco Rubio, declared himself the acting administrator of the agency and employees have been locked out of its Washington DC headquarters, while others have been suspended.
Trump has entrusted Elon Musk, the billionaire heading his drive to shrink the federal government, to oversee the project. On Sunday, Trump said USAid had “been run by a bunch of radical lunatics, and we’re getting them out”, while Musk called it “a criminal organization” without providing any evidence and said it was “time for it to die”.
Opening summary
Hello and welcome to the Guardian’s live US politics coverage. This is Helen Sullivan bringing you the latest.
Donald Trump has pulled back from the brink of a trade war with Canada and Mexico, postponing sweeping new US tariffs on goods from its two closest economic partners by one month.
It is the third time in two weeks the US president has delayed his threatened 25% tariffs on the two countries. China is still set to face additional 10% levy on its exports to the US from Tuesday.
Meanwhile, confusion over the fate of USAid continues. Marco Rubio, US secretary of state, said he was taking over the agency and then named controversial figure Peter Marocco to be the deputy administrator.
Here’s what else has happened today:
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Trump announced he’s planning to appoint Michael Ellis and the deputy director of the CIA. Ellis is a close Trump ally and worked in the president’s previous administration and helped fight allegations of collusion with Russia in the 2016 election.
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The Trump administration is opening new investigations into allegations of antisemitism at five US universities including Columbia and the University of California, Berkeley, the Education Department announced Monday.
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The US Senate on Monday confirmed Chris Wright, a fracking executive, to be Donald Trump’s energy secretary. The vote was 59-38. Wright, 60, the CEO of Liberty Energy since 2011 has said he will step down from the company once confirmed. He wrote in a Liberty report last year that he believes human-caused climate change is real, but that its hazards are “distant and uncertain”. He has also said that top-down governmental policies to curb it are destined to fail.
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The US interior department has unveiled a suite of orders aimed at carrying out Donald Trump’s agenda to maximise domestic energy and minerals production and slash red tape, Reuters reports. In a statement, the agency said interior secretary Doug Burgum, the former governor of North Dakota, signed six orders on his first day in office.
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US President Donald Trump has invited Indian prime minister Narendra Modi to visit the White House next week, a White House official said, hours after a US military plane departed to return deported migrants to the country.
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Senator Susan Collins, a republican from Maine, said she’ll vote to confirm Tulsi Gabbard as the director of national intelligence. Collins is a key swing vote and her support brings Gabbard’s nomination close to being sealed.
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Trump is reportedly mulling an executive order to dismantle the Department of Education, in alignment with mandates from Elon Musk’s “department of government efficiency” to slash federal agencies.
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Musk’s Doge reportedly accessed administration systems for the federal Small Business Administration. It has also reportedly accessed secure information at USAid and the Treasury department. According to Wired, Musk has reportedly deployed six young men to lead Doge’s efforts to access federal government data.
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The Trump administration made plain its intent to merge USAid with the state department under Musk’s supervision. Employees were barred from the agency headquarters today, after the website was shuttered over the weekend. Several democrats cried foul, calling the act illegal and denouncing Musk.
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The Trump administration may today begin using an obscure 18th-century law to deport undocumented migrants without first going through the courts.
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Darren Beattie, a former White House official who wrote, “Competent white men must be in charge if you want things to work,” is reportedly set for a top role at the state department.
Article by:Source: Helen Sullivan