Trump pauses tariffs on Mexico and Canada, but not China

The flags of Mexico, Canada and the United States are shown near the Ambassador Bridge, Monday, Feb. 3, 2025, in Detroit. (AP)
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Updated 04 February 2025
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Trump pauses tariffs on Mexico and Canada, but not China

  • Mexico agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal migration and drugs
  • Trump suggested on Sunday the 27-nation European Union would be his next target, but did not say when

MEXICO CITY/WASHINGTON/OTTAWA: US President Donald Trump suspended his threat of steep tariffs on Mexico and Canada on Monday, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighboring countries.
US tariffs on China are still due to take effect within hours.
Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum said they had agreed to bolster border enforcement efforts in response to Trump’s demand to crack down on immigration and drug smuggling. 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 10,000 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.

HIGHLIGHTS

• Trump pauses tariffs on Mexico and Canada

• Mexico, Canada to bolster border enforcement

• EU leaders meet to discuss tariff threat response

“As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that. I am very pleased with this initial outcome,” Trump said on social media.
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 1990s.

CHINA TARIFFS STILL PLANNED
No such deal has emerged for China, which faces across-the-board tariffs of 10 percent that are poised to begin at 12:01 a.m. ET on Tuesday (0501 GMT). A White House spokesperson said Trump would not be speaking with Chinese President Xi Jinping until later in the week.
Trump warned he might increase tariffs on Beijing further.
“China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher,” he said.
China has called fentanyl America’s problem and said it would challenge the tariffs at the World Trade Organization and take other countermeasures, but also left the door open for talks.
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.
“That’s very encouraging news,” said Chris Davison, who heads a trade group of Canadian canola producers. “We have a highly integrated industry that benefits both countries.”
Trump suggested on Sunday the 27-nation European Union would be his next target, but did not say when.
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. The US is the EU’s largest trade and investment partner.
Trump hinted that Britain, which left the EU in 2020, 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.
The tariffs as originally planned would cover almost half of all US imports and would require the United States to more than double its own manufacturing output to cover the gap — an unfeasible task in the near term, ING analysts wrote.
Other analysts said the tariffs could throw Canada and Mexico into recession and trigger “stagflation” — high inflation, stagnant growth and elevated unemployment — at home.

 


Greek coast guard search for 15 after migrant boat found adrift

Updated 09 December 2025
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Greek coast guard search for 15 after migrant boat found adrift

  • The two survivors reported that the vessel had become unstable due to bad weather and there was no means of getting shelter, food or water

ATHENS: Greek coast guard were on Monday searching for 15 people who fell into the water from a migrant boat that was found drifting off the coast of Crete with 17 bodies on board.
The 17 fatalities, all of them men, were discovered on Saturday on the craft, which was taking on water and partially deflated, some 26 nautical miles (48 kilometers) southwest of the island.
Post-mortem examinations were being carried out to determine how they died but Greek public television channel ERT suggested they may have suffered from hypothermia or dehydration.
A Greek coast guard spokeswoman told AFP that two survivors reported that “15 people fell in the water” after the motor cut out on Thursday, then the vessel drifted for two days.
At the time, Crete and much of the rest of Greece was battered by heavy rain and storms.
The two survivors reported that the vessel had become unstable due to bad weather and there was no means of getting shelter, food or water.
The vessel had 34 people on board and had left the Libyan port of Tobruk on Wednesday, the Greek port authorities said. Most of those who died came from Sudan and Egypt.
It was initially spotted by a Turkish-flagged cargo ship on Saturday, triggering a search that included ships and aircraft from the Greek coast guard and the European Union border agency Frontex.
Migrants have been trying to reach Crete from Libya for the last year, as a way of entering the European Union. But the Mediterranean crossing is perilous.
In Brussels, the EU’s 27 members on Monday backed a significant tightening of immigration policy, including the concept of returning failed asylum-seekers to “return hubs” outside the bloc.
The UN refugee agency said more than 16,770 asylum seekers in the EU have arrived on Crete since the start of the year — more than any other island in the Aegean Sea.
Greece’s conservative government has also toughened its migration policy, suspending asylum claims for three months, particularly those coming to Crete from Libya.