Trump pauses tariffs on Mexico and Canada, but not China

The flags of Mexico, Canada and the United States are shown near the Ambassador Bridge, Monday, Feb. 3, 2025, in Detroit. (AP)
The flags of Mexico, Canada and the United States are shown near the Ambassador Bridge, Monday, Feb. 3, 2025, in Detroit. (AP)
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Updated 04 February 2025

Trump pauses tariffs on Mexico and Canada, but not China

The flags of Mexico, Canada and the United States are shown near the Ambassador Bridge, Monday, Feb. 3, 2025, in Detroit. (AP)
  • Mexico agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal migration and drugs
  • Trump suggested on Sunday the 27-nation European Union would be his next target, but did not say when

MEXICO CITY/WASHINGTON/OTTAWA: US President Donald Trump suspended his threat of steep tariffs on Mexico and Canada on Monday, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighboring countries.
US tariffs on China are still due to take effect within hours.
Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum said they had agreed to bolster border enforcement efforts in response to Trump’s demand to crack down on immigration and drug smuggling. That would pause 25 percent tariffs due to take effect on Tuesday for 30 days.
Canada agreed to deploy new technology and personnel along its border with the United States and launch cooperative efforts to fight organized crime, fentanyl smuggling and money laundering.
Mexico agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal migration and drugs.
The United States also made a commitment to prevent trafficking of high-powered weapons to Mexico, Sheinbaum said.

HIGHLIGHTS

• Trump pauses tariffs on Mexico and Canada

• Mexico, Canada to bolster border enforcement

• EU leaders meet to discuss tariff threat response

“As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that. I am very pleased with this initial outcome,” Trump said on social media.
The agreements forestall, for now, the onset of a trade war that economists predicted would damage the economies of all involved and usher in higher prices for consumers.
After speaking by phone with both leaders, Trump said he would try to negotiate economic agreements over the coming month with the two largest US trading partners, whose economies have become tightly intertwined with the United States since a landmark free-trade deal was struck in the 1990s.

CHINA TARIFFS STILL PLANNED
No such deal has emerged for China, which faces across-the-board tariffs of 10 percent that are poised to begin at 12:01 a.m. ET on Tuesday (0501 GMT). A White House spokesperson said Trump would not be speaking with Chinese President Xi Jinping until later in the week.
Trump warned he might increase tariffs on Beijing further.
“China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher,” he said.
China has called fentanyl America’s problem and said it would challenge the tariffs at the World Trade Organization and take other countermeasures, but also left the door open for talks.
The latest twist in the saga sent the Canadian dollar soaring after slumping to its lowest in more than two decades. The news also gave US stock index futures a lift after a day of losses on Wall Street.
Industry groups, fearful of disrupted supply chains, welcomed the pause.
“That’s very encouraging news,” said Chris Davison, who heads a trade group of Canadian canola producers. “We have a highly integrated industry that benefits both countries.”
Trump suggested on Sunday the 27-nation European Union would be his next target, but did not say when.
EU leaders at an informal summit in Brussels on Monday said Europe would be prepared to fight back if the US imposes tariffs, but also called for reason and negotiation. The US is the EU’s largest trade and investment partner.
Trump hinted that Britain, which left the EU in 2020, might be spared tariffs.
Trump acknowledged over the weekend that his tariffs could cause some short-term pain for US consumers, but says they are needed to curb immigration and narcotics trafficking and spur domestic industries.
The tariffs as originally planned would cover almost half of all US imports and would require the United States to more than double its own manufacturing output to cover the gap — an unfeasible task in the near term, ING analysts wrote.
Other analysts said the tariffs could throw Canada and Mexico into recession and trigger “stagflation” — high inflation, stagnant growth and elevated unemployment — at home.


Dutch court dismisses appeal seeking to halt weapons exports to Israel

Dutch court dismisses appeal seeking to halt weapons exports to Israel
Updated 53 min 53 sec ago

Dutch court dismisses appeal seeking to halt weapons exports to Israel

Dutch court dismisses appeal seeking to halt weapons exports to Israel
  • The group of 10 NGOs were hoping the lawsuit would force the Dutch to stop sending weapons and trained police dogs to Israel
  • The Dutch government denied it is in violation of the 1948 Genocide Convention

THE HAGUE: A Dutch appeals court on Thursday dismissed an appeal by a group of human rights organizations that filed a lawsuit arguing the Netherlands was violating international law by continuing to sell weapons to Israel.
The Hague Court of Appeal found that although “there is a serious risk that Israel will commit genocide against the Palestinian population in Gaza,” the Dutch government has “considerable discretion” to determine foreign policy and issues of national security.
The group of 10 NGOs were hoping the lawsuit would force the Dutch to stop sending weapons and trained police dogs to Israel and cut economic ties with businesses operating in occupied Palestinian territory.
The activist groups pointed to several emergency orders from another court, the International Court of Justice, that they say confirmed the obligation to stop weapons sales. In January, the top UN court said it was plausible Palestinians were being deprived of some rights protected under the Genocide Convention.
A lower court ruled last year that there were sufficient checks already in place to comply with international law. In Thursday’s decision, the court noted that the government had already taken a number of measures, including stopping the exports of some products.
The Dutch government denied it is in violation of the 1948 Genocide Convention, drawn up following World War II. “Every cooperation is cautiously weighed,” government lawyer Reimer Veldhuis said during a hearing last year.
That hearing was held the day after another judicial institution in The Hague, the International Criminal Court, issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and his former defense chief for alleged war crimes in Gaza.
Netanyahu strongly denies the accusation.
Judges had postponed Thursday’s decision until after the Dutch Supreme Court ruled in a separate case on the export of fighter jet parts to Israel.
Human rights groups filed suit in 2023 to halt the export of F-35 fighter jet parts to Israel, citing a clear risk of violations of international law if they are used in strikes on Gaza.
Last month the Supreme Court ordered the Dutch government to reevaluate its currently suspended license. Foreign Minister David van Weel said at the time that it was unlikely that exports would resume “given the current situation” in Gaza.
A fragile US-brokered ceasefire aims to wind down the war that was triggered by the Hamas-led attack on southern Israel that killed about 1,200 people and saw 251 taken hostage on Oct. 7, 2023.
Israel responded with a sweeping military offensive that has killed more than 68,800 Palestinians in Gaza, according to Gaza’s Health Ministry. The ministry, part of the Hamas-run government and staffed by medical professionals, maintains detailed records viewed as generally reliable by independent experts.