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.

 


Proposals on immigration enforcement flood into state legislatures, heightened by Minnesota action

Updated 16 January 2026
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Proposals on immigration enforcement flood into state legislatures, heightened by Minnesota action

  • Oregon Democrats plan to introduce a bill to allow residents to sue federal officers for violating their Fourth Amendment rights against unlawful search and seizure

NASHVILLE, Tennessee: As Democrats across the country propose state law changes to restrict federal immigration officers after the shooting death of a protester in Minneapolis, Tennessee Republicans introduced a package of bills Thursday backed by the White House that would enlist the full force of the state to support President Donald Trump’s immigration crackdown.
Momentum in Democratic-led states for the measures, some of them proposed for years, is growing as legislatures return to work following the killing of Renee Good by an Immigration and Customs Enforcement officer. But Republicans are pushing back, blaming protesters for impeding the enforcement of immigration laws.

Democratic bills seek to limit ICE

Democratic Gov. Kathy Hochul wants New York to allow people to sue federal officers alleging violations of their constitutional rights. Another measure aims to keep immigration officers lacking judicial warrants out of schools, hospitals and houses of worship.
Oregon Democrats plan to introduce a bill to allow residents to sue federal officers for violating their Fourth Amendment rights against unlawful search and seizure.
New Jersey’s Democrat-led Legislature passed three bills Monday that immigrant rights groups have long pushed for, including a measure prohibiting state law enforcement officers from cooperating with federal immigration enforcement. Democratic Gov. Phil Murphy has until his last day in office Tuesday to sign or veto them.
California lawmakers are proposing to ban local and state law enforcement from taking second jobs with the Department of Homeland Security and make it a violation of state law when ICE officers make “indiscriminate” arrests around court appearances. Other measures are pending.
“Where you have government actions with no accountability, that is not true democracy,” Democratic state Sen. Scott Wiener of San Francisco said at a news conference.
Democrats also push bills in red states
Democrats in Georgia introduced four Senate bills designed to limit immigration enforcement — a package unlikely to become law because Georgia’s conservative upper chamber is led by Lt. Gov. Burt Jones, a close Trump ally. Democrats said it is still important to take a stand.
“Donald Trump has unleashed brutal aggression on our families and our communities across our country,” said state Sen. Sheikh Rahman, an immigrant from Bangladesh whose district in suburban Atlanta’s Gwinnett County is home to many immigrants.
Democrats in New Hampshire have proposed numerous measures seeking to limit federal immigration enforcement, but the state’s Republican majorities passed a new law taking effect this month that bans “sanctuary cities.”
Tennessee GOP works with White House on a response
The bills Tennessee Republicans are introducing appear to require government agencies to check the legal status of all residents before they can obtain public benefits; secure licenses for teaching, nursing and other professions; and get driver’s licenses or register their cars.
They also would include verifying K-12 students’ legal status, which appears to conflict with a US Supreme Court precedent. And they propose criminalizing illegal entry as a misdemeanor, a measure similar to several other states’ requirements, some of which are blocked in court.
“We’re going to do what we can to make sure that if you’re here illegally, we will have the data, we’ll have the transparency, and we’re not spending taxpayer dollars on you unless you’re in jail,” House Speaker Cameron Sexton said at a news conference Thursday.
Trump administration sues to stop laws
The Trump administration has opposed any effort to blunt ICE, including suing local governments whose “sanctuary” policies limit police interactions with federal officers.
States have broad power to regulate within their borders unless the US Constitution bars it, but many of these laws raise novel issues that courts will have to sort out, said Harrison Stark, senior counsel with the State Democracy Research Initiative at the University of Wisconsin Law School.
“There’s not a super clear, concrete legal answer to a lot of these questions,” he said. “It’s almost guaranteed there will be federal litigation over a lot of these policies.”
That is already happening.
California in September was the first to ban most law enforcement officers, including federal immigration officers, from covering their faces on duty. The Justice Department said its officers won’t comply and sued California, arguing that the laws threaten the safety of officers who are facing “unprecedented” harassment, doxing and violence.
The Justice Department also sued Illinois last month, challenging a law that bars federal civil arrests near courthouses, protects medical records and regulates how universities and day care centers manage information about immigration status. The Justice Department claims the law is unconstitutional and threatens federal officers’ safety.
Targeted states push back
Minnesota and Illinois, joined by their largest cities, sued the Trump administration this week. Minneapolis and Minnesota accuse the Republican administration of violating free speech rights by punishing a progressive state that favors Democrats and welcomes immigrants. Illinois and Chicago claim “Operation Midway Blitz” made residents afraid to leave their homes.
Homeland Security spokesperson Tricia McLaughlin accused Minnesota officials of ignoring public safety and called the Illinois lawsuit “baseless.”