Trump Delays Tariffs on Canada and Mexico, Implements Duties on China
U.S. President Donald Trump has opted to delay a planned 25% tariff on Canada and Mexico following last-minute agreements with their leaders. However, a 10% tariff on Chinese goods officially took effect after the deadline passed on Tuesday.
In a last-minute call, Canadian Prime Minister Justin Trudeau agreed to address Trump’s concerns regarding migration, border security, and the flow of fentanyl. Meanwhile, Mexican President Claudia Sheinbaum reached a separate agreement with Trump, committing to deploy additional troops along the U.S.-Mexico border to curb illegal migration. In return, Trump pledged efforts to limit gun trafficking into Mexico. The White House has announced that tariffs on Canada and Mexico will be suspended for 30 days as a goodwill measure.
A White House statement cited by the Associated Press suggested that Trump is expected to hold talks with Chinese President Xi Jinping later this week, raising hopes of a possible resolution to prevent a broader trade war.
China’s Retaliation Against U.S. Tariffs
China has swiftly responded to President Trump’s tariff measures by imposing new duties on various U.S. imports and launching an antitrust investigation into Google.
Beijing announced a 15% tariff on U.S. coal and liquefied natural gas, along with a 10% tariff on crude oil, agricultural machinery, and large-engine cars. These new tariffs are set to take effect next Monday.
This latest move marks another escalation in the ongoing trade conflict between the two economic superpowers. In 2018, Trump imposed tariffs on Chinese goods, prompting swift retaliation from Beijing, setting off a prolonged trade war.
China Warns: ‘No Winner in a Trade War’
China has strongly condemned the new U.S. tariffs, warning that it “may be forced to take countermeasures.” Beijing argues that the tariffs violate World Trade Organization (WTO) regulations and could have severe consequences for global trade.
“We are firmly opposed to this unwarranted increase and believe it violates WTO rules,” stated China’s Permanent Representative to the United Nations, Ambassador Fu Cong, during a press conference on Monday, February 3, 2025. The briefing coincided with China assuming the rotating presidency of the 15-member UN Security Council for February.
As tensions escalate, global markets remain on edge, with investors closely monitoring the developments between the world’s largest economies.
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