
President Donald Trump's 25% tariffs on goods imported from Mexico and Canada are now paused for at least 30 days after the commander in chief struck last-minute border security deals with both countries. The tariffs—initially set to take effect today—would have ignited a North American trade war, with consequences potentially passed on to consumers.
Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau agreed to send approximately 10,000 troops each to their respective borders with the US as part of efforts to curb the flow of illicit drugs (see data) and illegal immigration. Trudeau also said he would carry out a previously announced $1.3B border plan, appoint a "fentanyl czar," and launch a joint strike force to tackle organized crime, fentanyl trafficking, and money laundering. Negotiations between the US and its neighbors are expected to continue.
A 10% tariff on Chinese imports will still take effect today. Mexico, Canada, and China accounted for 42% of total US imports last year, or about $1T in goods.
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