Washington, Feb 4: US President Donald Trump has confirmed the tariffs for Mexico and Canada will be paused for 30 days, as both countries implement stricter border measures to "finally end the deadly scourge of drugs like Fentanyl."
Trump made the declaration on his Truth Social platform just hours after Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau said the tariffs will be postponed while the two nations step up border controls, reported the German news site, Deutsche Welle.
"As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that," Trump said. "I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30-day period."
Trump's tariffs stoke inflation fears
Global stock markets dived, the dollar rallied, oil prices jumped and world leaders readied tit-for-tat measures. Those were the almost immediate reactions to US President Donald Trump's new tariffs on Canada, Mexico and China, signed into law at the weekend.
Canada and Mexico both announced that the tariffs had been suspended for at least 30 days after talks with Trump.
Trump's latest measures are unprecedented in their scope and scale, targeting three of the United States' largest trading partners simultaneously. Economists have said their impact will likely paralyze economic growth both in the US and around the world, DW reported.
‘EU will respond 'firmly' if targeted 'unfairly' by US’
European leaders warned that US President Donald Trump's threat to impose tariffs on the EU risked sparking a trade war that would harm consumers on both sides of the Atlantic, as well as strengthen China's hand.
European Commission President Ursula von der Leyen said the bloc was aware of "potential challenges" in Transatlantic trade relations.
"When targeted unfairly or arbitrarily, the European Union will respond firmly," von der Leyen said following an informal gathering of EU leaders in Brussels, said DW.
She said EU leaders wanted to be pragmatic, engage early, discuss and negotiate with the United States, as a way of averting trade tensions.
"The debate today in the room was about the principle, first of all, be prepared. And I can only say we are prepared," she told a news conference.
EU foreign policy chief Kaja Kallas said if the US and Europe embarked upon a trade war "then the one laughing on the side is China."
Trump said on Sunday the EU was next in line following his decision to impose sweeping tariffs on Mexico, Canada and China, before pausing the measures on Mexico and Canada on Monday, according to the German news site.
"It will definitely happen with the European Union. I can tell you that because they've really taken advantage of us," Trump told reporters on Sunday.
"They don't take our cars, they don't take our farm products. They take almost nothing and we take everything from them."