US-Mexico Agree to Delay Tariffs as Trump Takes Steps to Force Allies and Adversaries to the Table
The Trump administration took significant foreign policy steps over the weekend aimed at convincing allies and adversaries alike to come to the bargaining table. And the results have been almost immediate with Panama and Mexico the first two countries agreeing to take important steps.
Trump and Mexican President Reach an Initial Deal
President Trump had signed an order over the weekend to impose stiff tariffs on imports from China, Canada, and Mexico. But on Monday morning, Mexico's president announced that she had a successful conversation with Trump and the U.S. tariffs against her country would be paused for one month. The White House confirmed the agreement.
Mexican President Claudia Sheinbaum said both sides have agreed to better border enforcement.
She posted on X, “Mexico will reinforce the northern border with 10,000 members of the National Guard immediately, to stop drug trafficking from Mexico to the United States, in particular fentanyl." And the U.S. reportedly committed to stopping high-powered weapons from reaching Mexico.
Trump's Carrot and Stick Approach to China, Canada, and Mexico
In announcing his tariffs, Trump declared an economic emergency and placed a 10 percent tariff on all imports from China and 25 percent on most imports from Mexico and Canada, except a 10 percent rate on Canadian oil.
Canada's Prime Minister Justin Trudeau retaliated, saying, "Tonight, I am announcing Canada will be responding to the U.S. trade action with 25% tariffs against $155 billion worth of American goods. This will include immediate tariffs on $30 billion worth of goods as of Tuesday. Followed by further tariffs on $125 million worth American products in 21 days time to allow Canadian companies and supply chains to seek to find alternatives."
Before her conversation with Trump, Mexico's president had also ordered retaliatory tariffs and China's Ministry of Foreign Affairs said the regime would "firmly deplore and oppose this move" by taking countermeasures to defend the country's interests.
Trump has accused all three countries of not doing enough to stop the flow of deadly drugs, especially fentanyl, into the U.S. The tariffs are partly designed to encourage them to do more about the opioid crisis which causes some 70,000 overdose deaths in the U.S. annually.
Trump's actions are leading to concerns of a potential trade war and higher prices for some specific goods including steel and computer chips, along with some cars, gas, and alcohol. Trump says he doesn't expect anything very dramatic if he does go ahead with the tariffs. His tariff order takes effect on Tuesday.
Panama Starts to Back Away from China
After a visit from new U.S. Secretary of State Marco Rubio, the president of Panama is promising to end a major development deal with China.
President Jose Raul Mulino says China's "Belt and Road" initiative in his country will not be renewed and may be ended earlier than planned.
President Trump has been concerned about China's growing influence in Panama, and the Belt and Road initiative has allowed China to get its hooks into Panama through investments, including $1.3 billion along the canal itself.
As CBN News has reported, the problem of China's influence spreads well beyond Panama. In recent years, at least 20 Latin American nations have joined China's Belt and Road initiative in which China invests in a nation's infrastructure, like the Panama Canal projects and a container port for Peru at the Port of Chancay. Those projects give China more influence over the countries they've invested in.
Meanwhile, President Mulino says Panama will keep operating the canal even as President Trump complains China is controlling it and saying he wants the U.S. to be more influential over the critical trade route rather than a communist adversary.
Secretary Rubio tweeted on X, "The United States cannot, and will not, allow the Chinese communist party to continue with its effective and growing control over the Panama Canal area."
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