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.

 


UN’s top court opens Myanmar Rohingya genocide case

Updated 14 min 8 sec ago
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UN’s top court opens Myanmar Rohingya genocide case

  • The Gambia filed a case against Myanmar at the UN’s top court in 2019
  • Verdict expected to impact Israel’s genocide case over war on Gaza

DHAKA: The International Court of Justice on Monday opened a landmark case accusing Myanmar of genocide against its mostly Muslim Rohingya minority.

The Gambia filed a case against Myanmar at the UN’s top court in 2019, two years after a military offensive forced hundreds of thousands of Rohingya from their homes into neighboring Bangladesh.

The hearings will last three weeks and conclude on Jan. 29.

“The ICJ must secure justice for the persecuted Rohingya. This process should not take much longer, as we all know that justice delayed is justice denied,” said Asma Begum, who has been living in the Kutupalong refugee camp in Bangladesh’s Cox’s Bazar district since 2017.

A mostly Muslim ethnic minority, the Rohingya have lived for centuries in Myanmar’s western Rakhine state but were stripped of their citizenship in the 1980s and have faced systemic persecution ever since.

In 2017 alone, some 750,000 of them fled military atrocities and crossed to Bangladesh, in what the UN has called a textbook case of ethnic cleansing by Myanmar.

Today, about 1.3 million Rohingya shelter in 33 camps in Cox’s Bazar, turning the coastal district into the world’s largest refugee settlement.

“We experienced horrific acts such as arson, killings and rape in 2017, and fled to Bangladesh,” Begum told Arab News.

“I believe the ICJ verdict will pave the way for our repatriation to our homeland. The world should not forget us.”

A UN fact-finding mission has concluded that the Myanmar 2017 offensive included “genocidal acts” — an accusation rejected by Myanmar, which said it was a “clearance operation” against militants.

Now, there is hope for justice and a new future for those who have been displaced for years.

“We also have the right to live with dignity. I want to return to my homeland and live the rest of my life in my ancestral land. My children will reconnect with their roots and be able to build their own future,” said Syed Ahmed, who fled Myanmar in 2017 and has since been raising his four children in the Kutupalong camp.

“Despite the delay, I am optimistic that the perpetrators will be held accountable through the ICJ verdict. It will set a strong precedent for the world.”

The Myanmar trial is the first genocide case in more than a decade to be taken up by the ICJ. The outcome will also impact the genocide case that Israel is facing over its war on Gaza.

“The momentum of this case at the ICJ will send a strong message to all those (places) around the world where crimes against humanity have been committed,” Nur Khan, a Bangladeshi lawyer and human rights activist, told Arab News.

“The ICJ will play a significant role in ensuring justice regarding accusations of genocide in other parts of the world, such as the genocide and crimes against humanity committed by Israel against the people of Gaza.”