Vikrant Shekhawat : Feb 04, 2025, 10:20 AM
Donald Trump News: US President Donald Trump has recently decided to pause the proposed tariffs on Mexico and Canada for 30 days. This decision was taken when both these countries took necessary steps to address Trump's concerns about border security and drug smuggling.Fear of trade war and its effectsThis is being considered a relief news amid the fear of a possible trade war in North America. In the event of a trade war, the following effects could have occurred:Decline in economic growth: Instability in trade would have a direct impact on the economies of the US and its trading partners.Increase in inflation: The increase in tariffs could have increased the prices of products, which would have increased inflation.Tension in trade relations: Relations between the US and Canada and Mexico would have been affected, which would have had a negative impact on trade agreements.Trump's reactionFormer President Trump said on social media, "I am very happy with this initial result. The tariffs announced on Saturday will be paused for 30 days so that a final economic agreement can be reached with Canada. Justice is necessary for all." His statement indicates that the US can move towards a long-term agreement with these countries.Trade war averted for nowThe trade war between Mexico and the US has been averted for now. Both countries have been given time to discuss issues like drug trafficking and illegal immigration. However, a 10% tariff on imports from China is still in place. Trump is planning to hold talks with Chinese President Xi Jinping on this subject soon.Uncertainty about the future remainsAlthough the immediate threat of a trade war has been averted, uncertainty about the future still remains. Trump can impose tariffs again at any time and is also planning to impose tariffs on products imported from the European Union.On Saturday, Trump had ordered a 25% tariff on products imported from Canada and Mexico, but it was later stopped. Apart from this, an additional 10% tariff was also announced on oil, natural gas and electricity coming from Canada.ConclusionFor now, the crisis of trade war in North America has been averted, but it is not completely over. Trump's policies can maintain instability in the business environment, which can affect global trade. Now it will be interesting to see how this situation develops in the coming days and in which direction the trade relations between America, Canada and Mexico move forward.
— Donald J. Trump (@realDonaldTrump) February 3, 2025