US tariffs on China are still due to take effect within hours. That would pause 25 percent tariffs due to take effect on Tuesday for 30 days. Canada agreed to deploy new technology and personnel along its border with the United States and launch cooperative efforts to fight organized crime, fentanyl smuggling and money laundering.
Mexico agreed to reinforce its northern border with 10, National Guard members to stem the flow of illegal migration and drugs. The United States also made a commitment to prevent trafficking of high-powered weapons to Mexico, Sheinbaum said. The agreements forestall, for now, the onset of a trade war that economists predicted would damage the economies of all involved and usher in higher prices for consumers.
After speaking by phone with both leaders, Trump said he would try to negotiate economic agreements over the coming month with the two largest US trading partners, whose economies have become tightly intertwined with the United States since a landmark free-trade deal was struck in the s.
Trump warned he might increase tariffs on Beijing further. The latest twist in the saga sent the Canadian dollar soaring after slumping to its lowest in more than two decades. The news also gave US stock index futures a lift after a day of losses on Wall Street. Industry groups, fearful of disrupted supply chains, welcomed the pause. EU leaders at an informal summit in Brussels on Monday said Europe would be prepared to fight back if the US imposes tariffs, but also called for reason and negotiation.
Trump hinted that Britain, which left the EU in , might be spared tariffs. Trump acknowledged over the weekend that his tariffs could cause some short-term pain for US consumers, but says they are needed to curb immigration and narcotics trafficking and spur domestic industries.
