U.S., Mexico, and Canada agree on temporary deferment of fresh tariffs for 30 days.
Trump's 25% tariff on imports from specific countries was supposed to kick off this Tuesday, according to our site and the BBC. However, here's what actually transpired:
The President put a pause on slapping Mexican imports with new customs duties for a month. This was a response to Mexico's leadership committing to beef up security at the northern frontier, promising to deploy 10,000 National Guard troops to combat drug trafficking. The folks up in Canada also delayed their plans, with Prime Minister Justin Trudeau pledging to toughen up border security.
Regarding China, a 10% tariff on imports has already taken effect. China, in turn, announced countermeasures. Specifically, the Chinese Ministry of Finance declared a 15% tariff on coal and liquefied natural gas imports from the US, along with a 10% tariff on oil and various other American goods, such as automobiles and agricultural machinery.
As of now, Trump hasn't held discussions with Chinese President Xi Jinping, despite his initial intentions. Chinese authorities have communicated that their countermeasures will commence next Monday.
It's worth noting that Mexico now faces a 25% tariff on all imports, with certain exceptions for USMCA-qualifying goods. These remain duty-free. For Canada, they faced a 25% tariff on most imports, with a 10% tariff on energy and potash imports. USMCA-compliant imports are exempt from these tariffs indefinitely. China, as of February 4, 2025, faces a 10% baseline tariff on top of existing tariffs up to 25% on many goods, with additional tariffs as high as 145% on most Chinese goods.
Historically, China has responded to U.S. tariffs by imposing its own tariffs on U.S. goods. However, the specifics of China's retaliatory actions in 2025 are yet to be detailed. The tariffs were part of Trump's broader trade policies intended to tackle issues like immigration, drug trafficking, and promoting domestic manufacturing. The International Emergency Economic Powers Act allowed these tariffs to be imposed without invoking national security concerns.
- The ongoing war-and-conflicts tariffs have impacted trade relations between the U.S. and Mexico, as Mexico now faces a 25% tariff on all imports, with exceptions for USMCA-qualifying goods, which remain duty-free.
- In the realm of policy-and-legislation, the tariffs implemented by President Trump are part of a broader move towards legislation aimed at tackling issues such as immigration, drug trafficking, and promoting domestic manufacturing, bypassing national security concerns under the International Emergency Economic Powers Act.
