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The United States President Donald Trump declared That he “will immediately pause” tariffs for Mexico and Canada for 30 days after talking to their leaders on Monday.
However, a 10 percent tariff for all China's exports comes into force on Tuesday.
So, what led to this decision and why the break was announced?
What happened between the US, Canada, Mexico and China?
On February 1, Trump signed executive orders, imposing 25 percent tariffs for Mexico and Canada, with partial release from Canadian energy and oil exports and a 10 percent tariff for China.
Trump also talks against the high trade deficit of goods with the three countries, which together amount to over $ 480 billion. China, Mexico and Canada collectively make up over 40 percent of the imports of goods to the United States last year at $ 1.2 trillion.
He said these tariffs would remain in force until the countries take steps to limit the flow of migrants and drugs, especially fentanyl, in the US. Tariffs were at risk of increasing the cost of online goods and provoking the uncertainty of the global market about the risk of a sharp slowdown in global growth.
On Monday, however, Mexico and Canada leaders made deals at the last minute, stopping the upcoming rates.
Mexico President Claudia Shainbaum has announced the deployment of 10,000 National Guard officers on the border to limit drug trafficking and migrants in the United States after talking to Trump.
Canadian Prime Minister Justin Trudeau also had two calls with Trump, after which he announced a 30-day pause in US tariffs. In return, Canada agreed to send forces to the border to fight drug trafficking and undocumented migration, as required by the new US administration.
Meanwhile, the 10 percent tariff imposed on China came into force at 12:01 pm EST (05:01 GMT) on Tuesday.
China has imposed vengeful tariffs on a number of US goods and products, including a 15 percent tax import and liquefied natural gas (LNG). Beijing also struck 10 percent tariffs on the import of raw oil and agricultural equipment.
Against the backdrop of the Tariff War, Trump said he intends to talk to Chinese President Xi Jinping in the coming days.
I just had a good conversation with President Trump. Canada applies our $ 1.3 billion border plan – strengthening the border with new choppers, technologies and staff, increased coordination with our American partners and increases resources to stop Fentanyl flow. Almost …
– Justin Trudeau (@justintrudeau) February 3, 2025
Why did Trump decide to stop the tariffs?
According to experts, the main goal of tariffs is “strategically achieving the goals of foreign policy and internal policy of Trump and this is to stop the flow of illegal drug fentanyl In the United States ”, Kymberly Halkett from Al Jazeera reported from the White House.
“You have to remember that Fentanyl is responsible for approximately 70,000 deaths from an overdose in the United States each year. While much attention is focused on Mexico and the southern border, US officials have also identified Canada and the northern border as key entrance points for the drug, “Halket added.
According to a report by The New York Times, in 2024, US customs and border protection agents seized approximately 19 kg (42 pounds) fentanyl at the northern border, complete contrast by nearly 9,600 kg (21,164 pounds) captured in the United States in the United States US Mexico Border, where cartels massively produce the drug.
Canada Economics Professor Julian Karagesian suggests that this dispute may not be over.
“It is possible for President Trump to simply try not only to make a show, but in fact to fulfill the promise of the campaign and to make noise of activity to show his base and to show the brighter American public that he not only fulfills the promises He is on his campaign, but he is also doing it with extreme prejudices, “Karagesian said.
What is next for China?
Trump has repeatedly criticized China for allowing fentanyl to immerse himself in the United States, accusing Beijing of not doing enough to limit the delivery of both false and true fentanyl.
China called the fental crisis “the problem of America.”
“China is one of the most difficult countries in the world in counter-narcotics both in terms of politics and its implementation. Fentanyl is a problem for the United States. In the spirit of humanity and good will, China has provided support to the US's answer to this question, “a Chinese Foreign Ministry said on Tuesday.
“It is important to remember that the PRC (Chinese People's Republic) is already facing tariffs imposed by the Trump administration during its first term, and the Biden administration has never removed them. These new tariffs are at the top of these existing measures, “said Jan Chong of Singapore National University in front of Al Jazeera.
“So far, China responded relatively calmly, suggesting that a 10 percent tariff is something they can last. While the PRC economy is slowing down, they are working to diversify other markets and increase domestic consumption. We'll have to see how this strategy is developing, “he added.
During his first term in 2018, Trump launched a fierce two-year trade war with China, imposing tariffs for Titus for Chinese imports of about $ 50 billion.
“We have a huge problem with intellectual property theft,” Trump said in 2018. “This will make us a much stronger, much -rich nation.”
To end this trade war, China agreed in 2020 To increase its $ 200 billion annual purchases, but the plan was violated by the Covid-19 pandemic, and Washington's annual commercial deficit with China remains over $ 300 billion, according to Chinese customs data published last month.
China, the world's second largest economy, says “Unilateral Raise Raise” by the United States “seriously violates the rules of the World Trade Organization.” He also launched an antitrust investigation by Google and imposed a rare export of the Earth, crucial for the production of semiconductors.
What happens in the next 30 days?
It's not quite clear yet. But analysts say the Trump administration is likely to negotiate with Mexico over the next 30 days.
“The great concern for Donald Trump is the flow of an illegal substance fentanyl, as well as illegal immigration to the United States, something that the US president has already addressed to an executive order,” said Halkett Al Jazeera.
AL JAZEERA correspondent has said US officials will negotiate a trade deficit with Mexico next month. The US trade deficit with Mexico is over $ 100 billion.
At the northern border, Trump said he was very pleased with the result of the negotiations, but is also looking for a “final economic deal”.
“I am very pleased with this initial result and the tariffs announced on Saturday will be stopped for a 30 -day period to see if the final economic transaction with Canada can be structured,” Trump said on social media. “Honesty for everyone!”
Trump also expressed interest in Canada to become the 51st US country, a concept that Trudeau rejected.
On Monday, Canada also made important messages.
“Canada has agreed to name Mexican drug cartels as terrorist organizations. We will name fentanyl “king” as a result of the conversation between Prime Minister Trudeau and President Trump. It creates a joint special strike group in Canada, to combat organized crime, “said McGill University Economics Professor in Canada Julian Karagesian.
“While these engagements of Canada have managed to get a one -month delay in the imposition of tariffs,” said Karagesian, “I personally do not believe this is the end of history.”
