On Monday (3) the tariffs imposed by US President Donald Trump over Canada and Mexico were frozen for a month.
The measure was taken after the Canadian, Justin Trudeau, and Mexican, Claudia Sheinbaum, announces reinforcements to US borders.
Trudeau decreed a border plan with an investment of $ 1.3 billion to control fentanyl trafficking in the region. Reinforcing the border with helicopters, technology and staff. Almost 10,000 people are on the front line, according to the country.
Trump had been saying he would use fees to press neighbors to reinforce their policies to control drug flow to the US. Fentanil is the drug that kills the most in the United States.
Sheinbaum said he will immediately send 10,000 members of the National Guard to strengthen control of the border. Working together with US authorities on security and trade guidelines.
The Republican had justified the entry of irregular drugs and immigrants into the southern border, as one of the reasons for the taxation of imports in Mexico.
Donald Trump talked to the two heads of state on Monday (3) after decreeing new rates to countries on Saturday (1st). The measure imposed 25% on Canadian and Mexican imports, plus 10% of China products.
The US President defined the conversations that resulted in agreements as “friendly” and “very good”, then the leaders, who were target of taxation, announced the freezing of economic measures.
With this the rates about Canada and Mexico will be suspended for 30 days from this Tuesday (4).
The order that suspends the tariff on Sheinbaum states, “in recognition of the measures taken by the Government of Mexico, and to assess whether the threat described in Section 1 of this order has decreased, the additional AD Valorem rate of 25% will be paused and will not come into force Until March 4, 2025, at 12:01 pm, east time ”.
The break is time for US authorities to evaluate if the country’s measures are sufficient to resolve seizures on the US-Mixic border.
If the situation gets worse, the president can proceed with the rates.
Regarding the resolution with Canada, Trump said the freezing will serve to analyze a final economic agreement with the country that may or may not be structured.
This content was originally published in Understand why Trump suspended tariffs about Canada and Mexico on the CNN Brazil website.
Source: CNN Brasil
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.
