This is the new MLex platform. Existing customers should continue to use the existing MLex platform until migrated.
For any queries, please contact Customer Services or your Account Manager.
Dismiss

US suspends tariffs on Canadian, Mexican imports for 30 days

By Joanna Sopinska

February 4, 2025, 00:15 GMT | Insight
The US tariffs of 25 percent on Canadian and Mexican imports will be suspended for at least 30 days, pending the implementation by both countries of their plans to beef up border controls against drug trafficking and illegal migration into the US. President Donald Trump announced the tariff delay following talks today with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.
The US tariffs of 25 percent on Canadian and Mexican imports will be suspended for at least 30 days, pending the implementation by both countries of their plans to beef up border controls against drug trafficking and illegal migration into the US.

US President Donald Trump announced the tariff delay following talks today with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.

In separate posts on social media, Trump said both countries committed to implement urgent plans to reinforce their border security measures. Mexico agreed to deploy 10,000 soldiers to the border with the US, and Canada committed to implement a border plan, Trump said (see here and here).

Trudeau's announcement placed his country's expenditure at C$1.3 billion, and Trump described the amount as $1.3 billion without further specifying a currency. In December, Canada announced a plan to spend C$1.3 billion ($900 million) on border control (see here).

Canada also committed today to appoint a “Fentanyl Czar” to oversee the plan to curb drug trafficking through the US border. “I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million,” Trudeau said.

Commenting on the agreement with Canada, Trump said he was “very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured.”

On Mexico, Trump said he was looking forward to negotiating with Sheinbaum to “achieve a ‘deal’ between our two countries.”

The 30-day period delays tariffs of 25 percent on imports from Canada and Mexico, which were due to enter into force tomorrow. Both countries took steps to retaliate in kind against US trade restrictions (see here). It’s understood that those measures have also been suspended, pending negotiations with the US. Trump also scheduled a 10 percent tariff against Chinese goods to take effect tomorrow.

Trump said last Friday that he would “absolutely” target the EU with tariffs to address the large US trade deficit with the bloc (see here).

Asked whether the EU was hopeful to avert the US tariffs through negotiations with Trump, European Commission President Ursula Von der Leyen said today that the bloc was prepared for any eventuality.

“I can only say we are prepared. That's important, but the second element is also important — be very pragmatic, engage early, discuss and negotiate if necessary,” Von der Leyen told reporters after the informal meeting with EU leaders in Brussels today (see here).

Please e-mail editors@mlex.com to contact the editorial staff regarding this story, or to submit the names of lawyers and advisers.

Tags