WASHINGTON (Diya TV) — President Donald Trump has delayed a planned 25% tariff on goods from Mexico and Canada, granting a 30-day pause after reaching agreements on border security and crime enforcement with both nations. The move, announced just hours before the tariffs were set to take effect, temporarily averts a trade war feared by economists and industry leaders.
In return, Canada committed to improving border security with new technology and personnel, while Mexico has agreed to deploy 10,000 National Guard troops to its northern border. President Trump said the agreements represented a big win for American security.
However, tensions with China are rising. Beijing responded to newly imposed U.S. tariffs with retaliatory measures, including a 15% levy on U.S. coal and liquefied natural gas and a 10% tariff on oil and agricultural equipment. China also announced an antitrust investigation into Google, escalating the conflict.
He threatened tariffs on the European Union, claiming unfair trade practices. The EU, the largest trade and investment partner of the U.S., has promised retaliation if targeted.
Market reactions have been swift: the Canadian dollar has rebounded after hitting a 20-year low, and U.S. stock futures have climbed. Analysts warn that a prolonged tariff battle could drive inflation and disrupt supply chains.
Trade experts point out that the tariffs imposed on China in the past resulted in a surge of U.S. imports from India. Exporters in New Delhi feel that Indian goods have a window of opportunity in the wake of the U.S.-China dispute.
Economists, however, believe that Trump’s tariff strategy could raise costs for American consumers, with the Peterson Institute for International Economics estimating an additional $1,200 in yearly expenses per household.
