Trump delays tariffs on Mexico and Canada, while China announces countermeasures

U.S. President Donald Trump on Monday delayed the implementation of tariffs on neighboring Mexico and Canada for one month following talks with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.

Meanwhile, China announced on Tuesday that a 15% tariff would be imposed on coal and liquefied natural gas (LNG) imported from the U.S, while crude oil, agricultural machinery, big-engined vehicles, and pickup trucks would face 10% duties, in response to Trump’s 10% tariffs on Chinese goods.

Sheinbaum and Trudeau both struck last-minute deals with Trump to tighten border measures against the flow of migrants and the drug fentanyl into the United States.

Border security agreements in exchange for tariff relief

Trump said on his Truth Social post that after “very friendly” talks with Sheinbaum he would “immediately pause” the tariffs on Mexico and that his counterpart had agreed to send 10,000 troops to the U.S.-Mexico frontier.

Tensions appeared higher between the United States and Canada—but after two calls with Trudeau, Trump said on Truth Social that Canada had “agreed to ensure we have a secure Northern Border, and to finally end the deadly scourge of drugs like Fentanyl.”

Trudeau said Canada would deploy nearly 10,000 frontline officers to help secure the border, list drug cartels as terrorists, appoint a “Fentanyl Czar” and crack down on money laundering.

It was not clear the real extent of the changes on the Canadian border, given that authorities said in December they already had 8,500 personnel deployed.

China announces countermeasures

China remained in the firing line for levies that are putting the global economy on edge as it is still due to face a further 10% duty on top of existing levies.

The U.S. president said last-minute talks between Washington and Beijing were due in a bid to reach an agreement. His spokeswoman Karoline Leavitt told Fox News “There is a plan for him to talk to President Xi in the next 24 hours.”

However, China announced that it would impose tariffs of 15% on imports of coal and (LNG) from the United States after Washington slapped 10% levies on Chinese goods. “A 15% tariff will be imposed on coal and liquefied natural gas (LNG),” Beijing’s commerce ministry said, adding the tariffs come into force next Monday.

On Saturday, Trump issued an executive order imposing a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on goods from China.