WASHINGTON (NEXSTAR) – The tariffs are paused for now, as President Donald Trump agreed to a 30- day suspension after he spoke with both Canada and Mexico. Both countries pledged to enhance their border security and combat drug trafficking.
The U.S. was dangerously close to starting a trade war that could have led to higher prices for Americans but instead there is a brief cool down for one month.
“Either very, very substantial tariffs are going to be paid by them. Or they’re going to make some kind of a deal,” said Trump.
President Donald Trump agreed to pause tariffs on two of the U.S.’ largest trading partners, Mexico and Canada.
“We can’t let them take advantage of the U.S.”, said Trump.
The 25% tariffs on imports from Mexico and Canada and 10% tariff on Canadian oil, natural gas and electricity are on hold for 30 days after President Trump spoke to Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum
Mexico agreed to deploy 10,000 members of its national guard to address drug trafficking and the U.S. agreed to help stop trafficking of high-powered weapons into Mexico.
“She did agree to 10,000 soldiers on the border. I would say that’s a lot. Would you say that’s pretty good,” said Trump.
Canada promised to name a fentanyl czar, list Mexican cartels as terrorist groups and launch a Canada-U.S. joint strike force to combat organized crime, fentanyl and money laundering.
Economic experts still warn of a future where these tariffs go into effect and Americans would see higher prices on groceries, electronics, cars and gas.
The U.S. has proceeded with imposing a 10% tariff on Chinese imports, leading China to retaliate with tariffs on American goods. President Trump will speak with Chinese President Xi Jinping in the coming days.