MEXICO CITY/WASHINGTON/OTTAWA, Feb 3 (Reuters) – U.S. President Donald Trump suspended his threat of steep tariffs on Mexico and Canada on Monday, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighboring countries.
U.S. tariffs on China are still due to take effect within hours.
Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum said they had agreed to bolster border enforcement efforts in response to Trump’s demand to crack down on immigration and drug smuggling. That would pause 25% tariffs due to take effect on Tuesday for 30 days.
The pause gives Canada and Mexico 30 days to reduce their exposure to the U.S. economy. Otherwise, the whole cycle of abuse begins again.