In separate negotiations, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum have agreed with U.S. President Donald Trump to pause planned tariffs for at least a month. Trump’s tariffs against China are still slated to go into effect on Tuesday.
Trump agrees to pause tariffs on Canada for a month
President Donald Trump on Monday held off on his tariff threats against Mexico and Canada for 30 days after the two U.S. neighbors agreed to boost border security efforts.
Trump on Saturday had directed that 25% tariffs on most imports from the two American partners — and 10% on Canadian energy products — go into effect at midnight Tuesday. The two nations threatened retaliation of their own, raising the prospects of a broader regional trade war.
In a statement on X, Canadian Prime Minister Justin Trudeau said that on a call with Trump he pledged additional cooperation on border security. It follows similar moves by Mexico earlier Monday.
“Proposed tariffs will be paused for at least 30 days while we work together,” Trudeau said.
Trump’s tariff threat sends crypto prices falling
Cryptocurrency prices took a hit from the prospect of a trade war between the U.S. and its major trading partners, with some well-known digital assets seeing values fall more than 10%.
Bitcoin fell below $100,000 after U.S. President Donald Trump announced plans Saturday to start putting large tariffs on goods from Canada, Mexico and China.
The world’s most popular cryptocurrency fell to about $92,000 Sunday night before rebounding to around $99,000 by Monday morning after Trump announced a pause on the tariffs on Mexican goods.
? Read more about the impact on other cryptocurrencies
Trump renews suggestion US could retake Panama Canal by force
“We either want it back, or we’re going to get something very strong. Or we’re going to take it back,” Trump said on Monday. “And China will be dealt with.”
Trump added, “China’s involved with the Panama Canal. They won’t be for long.”
Trump said U.S. Secretary of State Marco Rubio had discussions with Panama and was “trying to work a deal with them.”
He said there was a call coming on Friday with Panama officials and “they’ve agreed to certain things but I’m not happy with it.”
China renews threat to retaliate against US tariffs
U.S. President Donald Trump’s trade war with Canada, Mexico and China is ramping up over the production and importation of the opiate fentanyl, along with trade surpluses and illegal border crossings by migrants from across the globe.
China, meanwhile, has reiterated its threat to take “necessary countermeasures to defend its legitimate rights and interests” following Trump’s decision to impose 10% tariffs on China for allegedly doing too little to stem the production of precursor chemicals for fentanyl.
Wall Street is paring its losses after Mexico announces tariffs delay
Wall Street is paring its losses after Mexico’s president said the United States will delay its tariffs on Mexican imports by a month, easing some of the worries about a potential trade war.
The S&P 500 was down 0.7% in Monday morning trading after being down as much as 1.9% earlier. The Dow Jones Industrial Average was down 99 points, or 0.2%, as of 11 a.m. Eastern time, and the Nasdaq composite was 1% lower.
?Read more about the stock market today.
Mexico to send National Guard to its northern border
“Mexico will reinforce the northern border with 10,000 members of the National Guard immediately, to stop drug trafficking from Mexico to the United States, in particular fentanyl,” Mexican President Claudia Sheinbaum said in a post on the social platform X.
She added that the U.S. had committed to “work to stop the trafficking of high powered weapons to Mexico.”
US and Mexico agree to delay tariffs
Mexico and the United States have agreed to suspend the threatened tariffs for one month as Mexico immediately deploys 10,000 members of its National Guard to their shared border to battle drug trafficking, especially fentanyl.
President Claudia Sheinbaum said that Mexico had requested a call with Trump since Friday. The U.S. president called at 8 a.m. (Mexico) on Monday. He and Sheinbaum spoke for more than half an hour.
The U.S. committed to doing more to stop the trafficking of guns into Mexico and both countries have established teams to continue discussing security and trade issues going forward, Sheinbaum said.
Trump asked how long she wanted to pause it and she suggested forever, but he said Mexico could have a month to show results.The U.S. and Mexico struck a last-minute deal Monday, postponing a 25% tariff on all Mexican imports for one month.
The agreement comes after Mexico pledged to deploy 10,000 National Guard troops to its northern border to curb drug trafficking, particularly fentanyl.
