Trump, who was always a tariff supporter, always claimed that their influence would be borne by foreign exporters.
President Donald Trump has agreed to suspend the threat of tariffs on Mexico and Canada on Monday, as two largest trade partners in the United States have taken measures to cope with concerns about border security and drug trafficking. did.
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Drive the news
The suspension provides temporary grace after a tension period of taking the North American on the brink of the trade war. Tordeau has promised a $ 1.3 billion border security plan. This is a similar suspension of Mexico’s tariffs after Mexico’s Claudia Shainbaum agrees to reinforce the border, including additional staffing, upgrading technology, upgrading technology, and appointment a few hours ago. It was announced. However, 10,000 national security army security. However, China’s tariffs remain well, and Trump has revealed that Beijing is considered a major economic threat.
Read again: For 30 days since Trump talked to Justin Toldeau, Customs was suspended in Canada and Mexico, and Claudia Shainbaum
Why is that important?
This episode emphasizes Trump’s strategy to use tariff threats as a negotiating tool for extracting policy concessions from foreign leaders. His ability to secure border security commitments from both Canada and Mexico suggests that his aggressive trade tactics are still effective. The situation is more politically delicate for Tordow. His administration has agreed as part of the existing plan, but critics pointed out that Canada has already announced a similar border effort in December. On the other hand, Canada’s opposition has claimed that Trudeau has given Trump’s request too easily, and has strengthened the awareness that the United States has retained all leverage in trade disputes. Avoid economic difficulties. Mexico’s deeply dependent on US trade, and tariff risks have directly threatened their economy.
Read again: Why Trump agreed to suspend tariffs in Canada, Mexico for 30 days
Whole picture
Trump first announced new tariffs in Canada on weekends, with concerns about illegal immigrants and Fentanyl’s trafficking. Canada has announced its own retaliation tax on products in the United States, promoting the exile in the full -scale trade war. In the case of Mexico, but Symbaum immediately sent additional troops to the border, and Trump urged him to pause the tariff. However, China has left the Trump cross line and has been set to enable new tariffs despite the opposition in Beijing. Financial market. The Canadian dollu dropped to the lowest in two years, before the pause of customs duties was announced and before the recovery was slightly recovered. The US stock index futures in the United States, which were feared in the trade war, also opposed.
What Trump wants for trade tariffs | Economist explains
What they are saying
Both Trudeau and Trump took them to social media and announced X’s Trudeau. Canada has a $ 1.3 billion border plan. This has strengthened the border that has been adjusted to coordinates new chopper, technology, personnel, and American partners. Trump is a true social. This is a victory. Despite Trump’s victory tone, Canadians were not very enthusiastic. Opposition politicians have accused the cave as pressure, but many have pointed out that the border measures he announced are part of the previously planned initiative.
Read again: Trump’s tariff gambling, “pain” is earlier, but to ensure our interests, “match the price”
Between the line
Trump’s tariff strategy is not a new one. He consistently used economic pressure to enforce other countries to prevent demand. In 2019, he encouraged Mexican tariffs to crack down on illegal border intersections. Economic impact on military obligations. His latest tariffs on China reflect his continuous attitude that Beijing is engaged in “unfair trade practices.” The situation is more complicated for Canada. This country is our important allies, but I have previously noticed that I was on the Trump cross line. The threat of tariffs on Canadian steel and aluminum in 2018 brought a few months of tension negotiations before reaching the agreement. This time, Torudeau seemed eager to escalate the situation quickly, knowing that Canada’s economy was greatly dependent on trade with the United States.
Trump imposes tariffs on Mexico, Canada and China
Zoom in: Political impact
The Trudeau is facing large domestic radioactive drops from this transaction. His opposition claims that he has effectively rewarded Trump’s aggressive tactics by agreeing to the border measures that Canada is already planning. Some people are afraid to set a precedent for Canada to set up a precedent that Canada is always forced under our pressure. Trump, on the other hand, can claim political victory. By extracting border security commitments from both Canada and Mexico, he can claim that his tariff threats are effective in strengthening US safety. For China, the situation remains nervous. Unlike Canada and Mexico, Beijing has no desire to retreat. If Trump escalates tariffs, it can lead to long -term trade disputes with global economic results.
What is next?
The suspension of tariffs for the 30 days has been given a respiratory room in Canada and Mexico, but Trump is expecting continuous cooperation in border security. If he feels that he is lacking in progress, tariffs may recover. The White House suggests that Europe may be the next target, suggesting that Trump is also involved in the European Union. And Trump warns that if Beijing does not control Fentanyl cargo to the United States, they may increase.
Final thoughts
It is a feature of his leadership that Trump uses tariffs as a tool for economic and security policies. By forcing a concession to Canada and Mexico, he demonstrated that his approach could result in results. However, long -term impact on diplomatic relations has not yet been seen.
For now, the immediate threats of the North American trade war have been avoided, but to determine whether this is a temporary grace or the beginning of a greater economic confrontation, the next 30 days. It is important.
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