U.S. Rep. Jason Crow toured the base in Aurora, Colorado, Monday where officials told him that the facility will be used as a base of operations for federal immigration enforcement agencies but not as a detention center for immigrants in the U.S. illegally.
“I showed up today, started poking around like I like to do, and did discover that indeed the facility is being used for Homeland Security operations, for ICE operations,” said Crow, a Democrat, as he stood in front of the base and its sweep of dry, windblown grass.
Last week, Department of Defense officials said the base would be used to process immigrants, prompting concern from elected leaders. Crow’s visit to the base Monday didn’t turn up any signs that migrants would be housed there, such as cots, he said.
During the presidential campaign, Trump claimed that Aurora was overrun by a criminal gang from Venezuela and used the rhetoric to drive home his plan for mass deportation. Aurora officials said Trump’s statements were overblown.
In a surprising turn of events, President Trump has announced that he will be pausing the tariffs on steel and aluminum imports from Canada and Mexico. This decision comes after months of tense negotiations and threats of economic retaliation.
Additionally, in a separate development, the headquarters of the United States Agency for International Development (USAID) has been sealed off. The reasons for this sudden closure are unclear, but it has raised concerns among employees and the international development community.
Stay tuned for more updates on these breaking news stories. #Trump #Tariffs #USAID #LiveUpdates
Chrystia Freeland, Canada’s former finance minister, excoriated Trump’s tariffs in an interview on MSNBC’s “Morning Joe” today, blasting them in part as “so unjustified and so pointless.”
“These tariffs are being imposed truly for utterly no reason,” Freeland said. “The pretext offered is the flimsiest pretext possible.”
The White House has said it slapped a 25% tariff on Canadian goods to pressure the country into blunting the flow of fentanyl and immigrants into the U.S.
Freeland pushed back on that premise, saying that less than 1% of the fentanyl that comes into the U.S. moves across the northern border.
In fact, according to the White House’s fact sheet on tariffs, 43 pounds of fentanyl were seized at the northern border last fiscal year. In contrast, more than 21,000 pounds of fentanyl were seized at the southern border with Mexico during the same period, according to the administration.
“If border security were the issue, this could be solved in five minutes,” said Freeland, a member of Canadian Parliament who served as the country’s finance minister from August 2020 through December 2024.
Freeland, who is running to succeed outgoing Canadian Prime Minister Justin Trudeau, said Canadians were rallying against the Trump administration’s tariffs program. In response to the president’s repeated comments that Canada should become the 51st state, she said “our sovereignty is not negotiable.”
“If you hit us, we are going to hit back, and the whole country is going to be proud to do that,” she said.
President Trump is set to discuss tariffs with officials from Canada and Mexico as tensions rise over trade policies. The meeting comes as the U.S. looks to renegotiate NAFTA and implement tariffs on steel and aluminum imports.
In a surprise move, Elon Musk announced that his company, SpaceX, will be shutting down its USAID program. Musk cited concerns over government regulations and bureaucracy as reasons for the decision. The move has sparked controversy and debate over the future of government-funded space exploration.
Stay tuned for updates on these developing stories. #Trump #tariffs #Canada #Mexico #Musk #USAID #SpaceX #trade
President Donald Trump’s proposed tariffs against Canada and Mexico were both paused Monday after his decision to impose sweeping tariffs on Mexico, Canada and China initially led to retaliation from Canadian leaders and rattled global markets.
President Donald Trump speaks to reporters next to Air Force One after arriving back at Joint Base … [+] Andrews, Md., on Feb. 2.
Copyright 2025 The Associated Press. All rights reserved.
Timeline
Feb. 3, 1:57 p.m. ESTTrump announced the tariffs against Canada will be paused for 30 days, saying the longtime U.S. ally will implement a $1.3 billion border reinforcement plan that will bolster the U.S.-Canada border with “new choppers, technology and personnel… and increased resources to stop the flow of fentanyl.”
Feb. 3, 1:57 p.m. ESTCanadian Prime Minister Justin Trudeau announced the border reinforcement plan and tariff pause in a tweet, noting the launch of a “Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering,” the second of which Trump has used as a justification for sweeping tariffs (government reports contradict Trump’s claims that the flow of fentanyl coming to the U.S. through Canada is “massive,” according to The New York Times).
Feb. 3, 3:00 p.m. ESTChina’s ambassador to the United Nations Fu Cong said China will file a lawsuit with the World Trade Organization against Trump’s tariffs, The New York Times reports, adding the country believes the move violates WTO policies and China “may be forced to take countermeasures” against Trump’s taxes on its imports.
Feb. 3, 1 p.m. ESTTrump toldreporters in the Oval Office his 10% tariffs against China are an “opening salvo” and could still go up further and reiterated that the tariffs against Canada and China will still take effect Tuesday though Mexico’s taxes are paused, alsosaying the U.S. isn’t “treated well” by Canada and he “[doesn’t] know” what the northern country could do to keep the tariffs from taking effect.
Feb. 3, 10:41 a.m. ESTTrump said on Truth Social he had a “very friendly conversation” with Sheinbaum in which she “immediately” agreed to send 10,000 Mexican soldiers to the border, and confirmed they will pause the tariffs on the country’s imports for one month while his administration negotiates with Mexican officials.
Feb. 3, 10:21 a.m. ESTSheinbaum said the U.S. is pausing tariffs for a month in an announcement on X, also saying the country’s National Guard will station 10,000 members on the U.S.-Mexico border to protect against drug trafficking.
Feb. 3, 10 a.m. ESTU.S. stocks slumped Monday morning as the market responded to Trump’s tariffs, with alcoholic beverage companies, cryptocurrency-focused companies, automakers and multinational tech companies like Apple and Nvidia taking the biggest hits.
Feb. 3, 9:09 a.m. ESTTrump said on Truth Social he spoke with Trudeau and will speak with him again this afternoon—and continued to slam the country, claiming it’s responsible for a “DRUG WAR” and saying about Canadian leaders declining to do business with the U.S. because of tariffs, “What’s that all about?”
Feb. 3, 8 a.m. ESTOntario Premier Doug Ford said the province, which includes Toronto, will ban all U.S. companies from receiving government contracts with the province, saying those companies “only have President Trump to blame”—and canceled the province’s contract with Elon Musk-led satellite internet company Starlink, writing, “Ontario won’t do business with people hellbent on destroying our economy.”
Feb. 3, 6:50 a.m. ESTWith a threat of tariffs on European imports to the U.S. looming, markets in the continent were also hit with by a selloff with the Euro STOXX 50 Index sliding 1.6% while the London Stock Exchange’s FTSE 100 Index fell 1.2%
Feb. 3, 6:30 a.m ESTThe U.S. Dollar Index—which measures the U.S. currency against a basket of six other major currencies—rose to a two-year high of 109.45 on Monday morning, up nearly 1%.
Feb. 3, 6:15 a.m. ESTThe cryptocurrency market also appears to have been rattled by the fears of a trade war with Bitcoin’s price dropping more than 3.6% in the past 24 hours to $95,509.
Ether, which is the world’s second most valuable crypto token by market cap, was hit even harder as it price has crashed more than 15% in the previous 24 hours to around $2610.
The president’s own meme crypto token $TRUMP (Official Trump) also took a hit, as its price slid more than 13.5% in the previous 24 hours to $17.80. Unlike other major crypto tokens, however, $TRUMP has been on a downward slide since its explosive launch and had shed more than 30% of its value just in the last week.
Feb. 3, 6 a.m. ESTThe U.S. stock futures slumped early on Monday as global markets braced for the fallout of President Donald Trump’s decision to impose sweeping tariffs on imports from Canada, Mexico and China.
As of early Monday morning Dow Futures was down to 44,113, falling 1.3%, while the tech centric NASDAQ Futures saw an even sharper slump of 1.6% to 21,227. S&P 500 Futures were also hit by the selloff, dropping 1.4% to 5,980.
Feb 3, 5 a.m. ESTMajor Asian stock indices were also hit by a selloff amid trade war concerns with Japan’s Nikkei 225 index falling 2.66%, Australia’s S&P/ASX 200 dropping 1.79%, South Korea’s KOSPI index down 2.52% and India’s BSE Sensex down 0.41%.
In China, the Shanghai Stock Exchange’s Composite Index closed relatively flat, only 0.06% in the red, while the Shenzhen-based SZSE Component Index—which focusses on tech companies and small cap private enterprises—took a bigger hit and dropped 1.33%.
Feb. 2, 2:53 p.m. ESTMexican President Claudia Sheinbaum issued a video message on X announcing the country will come out with more details Monday morning on its countermeasures against the U.S. tariffs, saying the country will “act with a cool head and love for the people” and arguing Trump’s claims the Mexican government is allied with criminal drug groups is “terribly irresponsible,” according to translations by Bloomberg and The New York Times.
Feb. 2, 2 p.m. ESTTrump’s border czar Tom Homan told the Times in an interview that Canada has “taken steps” to address Trump’s concerns about immigration and drug trafficking, “but they haven’t taken enough steps,” adding that while Canada is “improving” its border security, Trump “doesn’t feel like they’ve done enough, and that’ll be his call.”
Feb. 2, 1 p.m. ESTThe Canadian government unveiled the full list of U.S. imports that the country will levy 25% tariffs on as part of its retaliatory measures against the U.S., which will apply to $30 billion worth of goods to start out with, including numerous food items, plastics, rubber, luggage, lumber, clothing, business supplies, glassware, appliances, furniture, cosmetics and more.
Feb. 2, 10:30 a.m. ESTHomeland Security Secretary Kristi Noem acknowledged on “Meet the Press” that Trump’s tariffs could raise prices but said the blame would fall on other countries for not following Trump’s demands, rather than the president, encouraging other countries to “get on board and to make sure that they’re not pushing up prices” and claiming “if prices go up, it’s because of other people’s reactions to America’s laws.”
Feb. 2, 9 a.m. ESTCanadian Ambassador Kristen Hillman told ABC News Canadians are “perplexed” and “confused” by Trump’s tariffs on the nation’s imports and argued it’s “hard to know what more we can do” to prevent the tariffs since the Canadian government has already been “leaning in hard” to appease Trump—but noted Canada does not intend to back down from its plan for retaliatory tariffs, as Canadians “are going to expect that our government stands firm and stands up for itself.”
Feb. 2, 8:30 a.m. ESTDoug Ford, the premier of Canada’s Ontario province, said on X the region’s sole liquor wholesaler will remove American alcohol from its catalogs so that stores and restaurants in Ontario cannot stock any U.S. liquors—it follows similar moves from Nova Scotia Premier Tim Houston and British Columbia Premier David Eby, who banned his province’s Liquor Distribution Branch from buying American alcohol from “red states.”
Feb. 2, 8:09 a.m. ESTThe president defended his decision, writing on Truth Social, “WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”
Feb. 1Canada and Mexico both levied retaliatory tariffs on U.S. imports in response to Trump’s directive, while China said it would file a lawsuit with the World Trade Organization and take “countermeasures” in response to the move.
Feb. 1Trump imposed 25% tariffs on imported goods from Canada and Mexico—other than energy from Canada, which will be taxed at 10%—and an additional 10% tariff on goods from China, which he claimed was to hold the countries “accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”
Crucial Quote
“MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS!” Trump said on Truth Social in defense of his tariffs. “WE ARE A COUNTRY THAT IS NOW BEING RUN WITH COMMON SENSE — AND THE RESULTS WILL BE SPECTACULAR!!!”
When Will Trump’s Tariffs Take Effect?
Trump’s tariff order will take effect Tuesday for duties that are levied on imported goods, except for any imports that were already in transit before Trump ordered the tariffs Saturday. Hillman told ABC News on Sunday the country is “hopeful” the tariffs will not take effect and the country’s government is “ready to continue to talk to the Trump administration about that,” though it’s unclear that Trump will negotiate at all on his plans.
What Impact Will Trump’s Tariffs Have On Prices And The Economy?
Trump’s tariffs on Canada, Mexico and China would effectively could cost each U.S. household more than $830 in additional taxes in 2025, according to an analysis released by the center-right Tax Foundation. The organization also predicted Trump’s plan would reduce the U.S.’ economic output by 0.4% and increase taxes in the U.S. overall by $1.2 trillion between 2025 and 2034. Economists have long warned Trump’s tariff plan would raise prices for American consumers—as the import taxes are paid by the U.S. companies that import foreign goods, which then pass on those costs to the consumer by raising prices—and a May analysis by the nonpartisan think tank Peterson Institute for International Economics (PIIE) concluded Trump imposing broad tariffs on imported goods would “[inflict] significant collateral damage on the US economy.” Goldman Sachs economists led by Ronnie Walker previously projected in April that prices on consumer goods would go up by 0.1% for every percentage increase in the effective tariff rate and raise inflation. In addition to imported goods, economists have predicted the price of domestic goods will also go up, as U.S. companies will “opportunistically” raise prices to take advantage of having less competition from imported products.
Will Trump Impose More Tariffs?
Trump has suggested he wants to impose universal tariffs on other countries’ goods, though it’s still unclear when that could happen or what any broader tariffs could look like. “I have it in my mind what it’s going to be but I won’t be setting it yet, but it’ll be enough to protect our country,” Trump said Monday about his plan to impose tariffs on all imported goods. The president told reporters Friday he plans on “doing something substantial” in terms of taxing European imports specifically, saying, “Am I going to impose tariffs on the European Union? Do you want the truthful answer or should I give you a political answer? Absolutely, absolutely.”
How Has The Business Community Responded To Trump’s Tariffs?
Business and manufacturing groups have criticized Trump’s tariffs, with U.S. Chamber of Commerce vice president John Murphy saying the move “is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains.” National Association of Manufacturers CEO Jay Timmons said the “ripple effects” of the tariffs “will be severe,” particularly for smaller manufacturers, warning, “Ultimately, manufacturers will bear the brunt of these tariffs, undermining our ability to sell our products at a competitive price and putting American jobs at risk.” Leaders of major companies have previously suggested Trump’s tariffs will lead to higher prices for American consumers, with Walmart chief financial officer John David Rainey telling CNBC in November the import taxes mean “there probably will be cases where prices will go up for consumers.” Best Buy CEO Corie Barry acknowledged on the company’s earnings call in November that most of its goods are imported from China and Mexico and any tariffs would likely result in higher prices, saying, “These are goods that people need, and higher prices are not helpful.”
How Has The Chinese State Media Reacted To Trump’s Tariffs?
In China, the state-run tabloid Global Times, criticized the move in an editorial, saying “trade coercion” will not fix the U.S.’s “fentanyl crisis.” The op-ed notes that the Trump administration’s actions “violates WTO rules and disciplines” and result in countermeasures that “could lead to a global trade war.” The Chinese foreign ministry also expressed opposition to the move and said it would take “necessary countermeasures to defend its legitimate rights and interests.” The ministry said the tariffs cannot “solve the U.S.’ problems at home” and will not benefit either side.
How Has The Canadian Media Reacted To Trump’s Tariffs?
The Toronto Star published a guide for people who want to buy Canadian during the trade war, which included a list of grocery and other essential products sold by Canadian companies. The newspaper’s editorial titled: “We didn’t want this trade war. But now we must fight,” urged Canadians to “band together despite our differences” and grasp that “no one has ever won by appeasing a bully.” The Globe and Mail’s editorial page said that the trade war would reshape North America and warned, “There will be no way to satisfy all his demands. He will keep using them in a predatory manner…There will be no way to satisfy all his demands. He will keep using them in a predatory manner.” The Toronto Sun’s editorial acknowledged Canada will not be able to win an “all-out trade war” with the U.S. but added: “Still, when the bully hits you, you hit back.” The editorial called for retaliation targeting products that “Americans will notice” but “will have the least impact on Canadian consumers.”
How Much Fentanyl Comes From Canada And Mexico?
Trump has used the flow of fentanyl as one of his primary justifications for tariffs against Canada and Mexico, despite the U.S.’ northern ally not playing a large role in fentanyl smuggling when compared to Mexico. Trudeau has said fentanyl smuggling from Canada contributes to a fraction of a percent of the illegal fentanyl in the U.S., while U.S. Drug Enforcement Administration data has found only about 43 pounds of fentanyl was seized at the northern border in 2024. That same year, about 21,100 pounds of fentanyl were seized at the southern border.
Key Background
Trump has long vowed to impose tariffs on imported goods, even as economists and business leaders have decried the move. The president previously levied higher tariffs on Chinese imports during his first term, which sparked a trade war with China before the two sides reached a trade agreement in December 2019. While Trump long promised on the campaign trail to levy tariffs on imported goods, he only proposed 25% tariffs on Mexican and Canadian goods in November, which marked an escalation over the 10% to 20% he proposed pre-election. The president’s order Sunday comes after Trump said on his first day in office that he planned to impose the tariffs Feb 1, and imposed the broad tariffs with few restrictions despite earlier reports suggesting his administration was considering exempting certain imports or delaying the tariffs until March.
Tangent
In his Truth Social posts Sunday, Trump also reiterated his desire for Canada to become the “51st state,” claiming the country wouldn’t be “viable” if it weren’t for U.S. subsidies. Making it a U.S. state would mean “much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!” Trump claimed. Canadian officials have strongly decried any suggestion the country should become part of the U.S., with Immigration Minister Marc Miller saying the suggestion is “beneath a president of the United States” and Minister of Intergovernmental Affairs Dominic LeBlanc saying the comments are “a way for [Trump], I think, to sow confusion, to agitate people, to create chaos knowing this will never happen.”
Good news! The proposed tariffs on imports from Canada and Mexico have been paused. This decision comes after negotiations between the countries to address trade issues and avoid a potential trade war.
The tariffs, which were set to go into effect in the coming weeks, would have increased the cost of goods imported from Canada and Mexico, leading to higher prices for consumers and potential retaliation from the affected countries.
This pause in tariffs is a positive step towards maintaining strong trade relationships with our neighbors and avoiding unnecessary economic strain. It is important for all parties involved to continue working towards fair and mutually beneficial trade agreements in the future.
Stay tuned for further updates on this developing situation. Let’s hope for continued progress and cooperation between Canada, Mexico, and the United States. #TradeRelations #Tariffs #Canada #Mexico
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Canada and Mexico tariffs, trade agreements, North American trade, international relations, economic impact, proposed tariffs, global trade, tariffs negotiation
Donald Trump has pulled back from the brink of a trade war with Canada and Mexico, postponing sweeping new US tariffs on goods from its two closest economic partners by one month.
It is the third time in two weeks the US president has delayed his threatened 25% tariffs on the two countries. China is still set to face additional 10% levy on its exports to the US from Tuesday.
Following talks with the Canadian prime minister, Justin Trudeau, and the Mexican president, Claudia Sheinbaum, on Monday, Trump agreed to hold off from imposing new duties on the two countries.
The agreements came on a day of extreme volatility in global financial markets as rattled investors reacted to the prospect of a dramatically escalating dispute involving the world’s largest economies.
The US president had upended US-Mexico ties over the weekend when he announced 25% tariffs and accused Sheinbaum’s administration of engaging in an “intolerable alliance” with Mexican crime groups.
Sheinbaum rejected that “slanderous” accusation, but on Monday morning struck a softer note as she announced “a series of agreements” with Trump after a conversation between the two leaders during which they agreed to pause US tariffs for a month to allow for fresh negotiations.
Mexico had agreed to send 10,000 members of its national guard “to prevent drug trafficking from Mexico to the US, in particular of fentanyl”, Sheinbaum said. In return, the US had agreed to work to prevent high-powered weapons crossing the border into Mexico.
Trump confirmed the deal shortly afterwards on his Truth Social network. He said 10,000 Mexican soldiers would be “specifically designated to stop the flow of fentanyl, and illegal migrants into our country”.
Negotiations involving senior Mexican officials, the US secretary of state, Marco Rubio, the US treasury secretary, Scott Bessent, and the US commerce secretary, Howard Lutnick, would take place during the pause, he said.
Following two calls with Trump on Monday, Trudeau announced that tariffs would be “paused” for 30 days. “Canada is implementing our $1.3bn border plan – reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl,” he said in a statement. “Nearly 10,000 frontline personnel are and will be working on protecting the border.”
Late last year, Trump threatened to impose tariffs on Canada, Mexico and China on the first day of his presidency. From the first day of his presidency, he said he would do so from 1 February. This weekend, he said they would kick in from 4 February. They have now been delayed until March.
Economists have warned Trump’s planned wave of tariffs would risk raising prices for millions of Americans, just weeks after he pledged, upon taking office, to “rapidly” bring them down.
On Monday, however, Trump maintained that tariffs were a “very powerful” means of both strengthening the US economically and “getting everything else you want”. He had conceded over the weekend that they could cause “a little pain” in the US.
Markets sold off sharply worldwide in response to what has been described as a “Trump tariff tantrum” before recovering some of their losses after news broke of the deal with Mexico. Wall Street fell in early trading, with the S&P 500 down almost 2%. Share prices in Europe followed a sharp move lower in Asia.
London’s FTSE 100 index dropped 1.4% from Friday’s record high before making back some of its losses to trade down 1%.
Trump also indicated on Sunday that the EU would be next to face tariffs, but did not say when.
EU leaders meeting at an informal summit in Brussels on Monday said Europe would fight back if the US imposed tariffs, but called for negotiation. The French president, Emmanuel Macron, said that if the bloc’s commercial interests were attacked it would “make itself respected and thus react”.
The German chancellor, Olaf Scholz, said the EU could respond if necessary with its own tariffs, but stressed it would be better for the two sides to find agreement on trade.
Trump hinted that Britain might be spared tariffs, saying: “I think that one can be worked out.”
Asked whether he was worried by Trump’s refusal to rule out imposing sanctions on the UK, the country’s prime minister, Keir Starmer, said: “Obviously, it’s early days.
“I think what’s really important is open and strong trading relations and that’s been the basis of my discussions with President Trump. I know that intense US-EU discussions are planned.”
Officials, analysts and economists who believe Trump’s tariffs could have disastrous consequences for the global economy and for Washinton’s place in the world voiced relief at the Mexico deal.
Experts believe Trump’s plans for 10% tariffs on China and 25% on Canada and Mexico would hamper global growth and cause inflation in the US. Even Trump admitted on Sunday that the measures might cause “a little pain”.
Brian Winter, the editor-in-chief of Americas Quarterly magazine and a Latin America expert, said: “I don’t think anyone expected a resolution today, and obviously it’s a relief. But the damage is done.
“I can personally imagine a scenario where, within a year, President Trump is on buddy-buddy terms again with Mexico. But you cannot unsee what happened over the last 48 hours. And if companies make decisions in terms of years and decades, how they think about Mexico specifically, and its place in the US value chain, is forever changed.”
Speaking at her daily press conference in Mexico City, Sheinbaum told reporters that at the end of a 30- to 45-minute conversation with Trump, she had joked with him that she would like to see tariffs suspended forever. She said she believed a one-month reprieve represented a good deal, however, and painted the agreement as a win for both sides.
“In Mexico we have rocket launchers that come from the US illegally … How can these high-powered weapons get into Mexico from the US?” she asked, hailing Trump’s apparent commitment to fight gun smuggling as part of the agreement.
Winter said he believed that in some ways Trump’s strong-arm tactics appeared to be working.
Four of his opening moves on the world stage have come in Latin America: diplomatic tussles with Colombia and Venezuela over the deportation of migrants; with Mexico over drug trafficking and migration; and with Panama over supposed Chinese involvement in the Panama canal. In all four cases, Trump has managed to claim victory or extract concessions, although critics argue many of those are largely cosmetic and designed to achieve little more than to please his base.
Winter said: “There’s no doubt that Trump’s approach has produced tangible short-term results in Latin America, decisions that were made with a scope and timeline that otherwise would not have been possible … I think you have to acknowledge that each of these governments have moved far more quickly to accommodate Washington than they would have under a more traditional request.
“The question is, though: what does this do to Washington’s alliances in the medium term? Does it push these countries closer to China? I have my doubts … but with all of these crises, scars remain. I think that governments understand that this is an even more transactional government than in Donald Trump’s first term, and that they can’t really think in terms of alliances anymore with the United States. That’s a huge change.”
The Trump administration has announced that they will be postponing the imposition of tariffs on Canadian and Mexican goods for an additional month. This decision comes after ongoing negotiations between the three countries to address various trade issues.
President Trump had previously threatened to impose tariffs on all goods coming from Mexico in an effort to curb illegal immigration. However, after reaching a deal with Mexico to increase border security measures, the tariffs were put on hold.
Similarly, tariffs on Canadian steel and aluminum were also being considered, but have been delayed once again to allow for further discussions.
This latest development is seen as a positive step towards resolving trade disputes with two of the United States’ biggest trading partners. Stay tuned for more updates on this developing story.
Mexico, Jamaica, Dominican Republic – The Battle for Caribbean Luxury: Hyatt Eyes Complete Takeover of Playa Hotels & Resort’s Kingdom! – Travel And Tour World
Mexico, Jamaica, Dominican Republic – The Battle for Caribbean Luxury: Hyatt Eyes Complete Takeover of Playa Hotels & Resort’s Kingdom!
In a move that could reshape the luxury hospitality landscape in the Caribbean, Hyatt Hotels Corporation is reportedly considering a complete takeover of Playa Hotels & Resorts, one of the region’s leading luxury hotel operators.
Playa Hotels & Resorts currently owns and operates a portfolio of all-inclusive resorts in Mexico, Jamaica, and the Dominican Republic, including popular properties like the Hyatt Ziva and Zilara brands. The company has been a major player in the Caribbean luxury market, offering guests high-end accommodations, gourmet dining, and top-notch amenities.
Hyatt’s interest in acquiring Playa Hotels & Resorts comes at a time when the tourism industry in the Caribbean is rebounding from the challenges posed by the COVID-19 pandemic. With travel restrictions easing and demand for luxury hospitality experiences on the rise, Hyatt sees an opportunity to expand its presence in the region and capitalize on the growing demand for high-end resorts.
If the acquisition goes through, it could have far-reaching implications for the Caribbean luxury market. Hyatt’s global reach and reputation for excellence could bring new levels of sophistication and service to Playa Hotels & Resorts’ properties, while also opening up new opportunities for growth and expansion in the region.
As the battle for Caribbean luxury heats up, all eyes are on Hyatt and Playa Hotels & Resorts to see how this potential takeover will unfold. Stay tuned for more updates on this developing story as it continues to unfold.
Mexico has agreed to deploy 10,000 troops to the U.S.-Mexico border in exchange for a one-month delay on President Donald Trump’s threatened tariffs, Mexican President Claudia Sheinbaum said Monday.
Sheinbaum made the announcement on social media Monday morning, roughly 12 hours before the tariffs were set to take effect. Trump and Sheinbaum spoke on Monday and agreed that Mexico will do more to combat drug trafficking into the U.S., and that the U.S. will step up efforts to block the flow of firearms into Mexico.
Sheinbaum also said officials with the U.S. and Mexico were beginning talks on wider trade and security issues.
Trump confirmed the deal in his own post on Truth Social, describing the call with Sheinbaum as a “very friendly conversation.”
Mexican President Claudia Claudia Sheinbaum spoke with President Donald Trump on Monday and came to an agreement regarding tariffs and the U.S.-Mexico border.(Getty Images)
“I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States. These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country,” Trump wrote.
“We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico. I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” he added.
Mexico will send 10,000 national guard troops to help secure the U.S.-Mexico border against drug trafficking and illegal immigration.(Qian Weizhong/VCG via Getty Images)
The deal comes just days after Trump announced 25% tariffs on both Mexico and Canada, as well as 10% tariffs on China. Trump says he spoke with Canadian Prime Minister Justin Trudeau on Monday, but the pair did not reach an agreement. He says they will speak again later Monday.
The tariffs are set to take effect at midnight on Tuesday.
Canadian Prime Minister Justin Trudeau slighted the U.S. by encouraging Canadians to “buy Canada” in response to the tariffs.
Canada Canadian Prime Minister Justin Trudeau called on citizens to “buy Canada” in response to Trump’s threat of tariffs.(AP/Adrian Wyld/The Canadian Press)
“Now is the time to choose products made right here in Canada,” Trudeau wrote on X. “Check the labels. Let’s do our part. Wherever we can, choose Canada.
During Sunday’s exchange with reporters, Trump also discussed the prospect of cutting off aid to South Africa after its president signed a controversial land seizure measure.
Anders Hagstrom is a reporter with Fox News Digital covering national politics and major breaking news events. Send tips to Anders.Hagstrom@Fox.com, or on Twitter: @Hagstrom_Anders.
In a recent development, Mexico has agreed to deploy 10,000 troops to the US border in exchange for a pause on tariffs threatened by President Donald Trump. This agreement comes after weeks of tense negotiations between the two countries over the issue of immigration.
The decision to deploy troops to the border is aimed at curbing the flow of migrants crossing into the United States illegally. This move is seen as a significant step towards addressing the issue of illegal immigration, which has been a major point of contention between the two countries.
President Trump had threatened to impose escalating tariffs on Mexican goods if the country did not take action to curb the flow of migrants. However, with this new agreement, the tariffs have been put on hold, providing some relief to both countries.
The deployment of troops to the border is expected to begin immediately and will continue until the issue of illegal immigration is brought under control. This move is seen as a positive step towards addressing a complex and contentious issue that has strained relations between the US and Mexico.
Overall, this agreement represents a significant development in the ongoing efforts to address the issue of illegal immigration and demonstrates the importance of diplomacy and cooperation between nations.
La decisión del presidente de Estados Unidos, Donald Trump, de imponer aranceles de 25 por ciento a Canadá y México, y 10 por ciento a los productos chinos, no solo desató el inicio de una guerra comercial que tendrá repercusiones mundiales, sino una crisis con graves acusaciones entre los socios que giran en torno a migración y carteles del narcotráfico y fentanilo.
China, Canadá y México son los principales socios comerciales de la economía norteamericana y juntos representan el 40 por ciento de las importaciones por ese país. Además, uno de los sectores que más sufriría sería el de la industria del automóvil, pues se estima que alrededor del 90 % de las exportaciones de automóviles tanto de México como de Canadá se dirigen a Estados Unidos.
De momento, a diferencia de México y Canadá, China mantiene el tono de cautela, sabiendo las serias implicaciones que estos aranceles traerán cuando entren en vigor este martes. Pekín aseguró ayer que tomará “contramedidas correspondientes” para “salvaguardar firmemente” sus derechos e intereses.
“China se opone firmemente a estos aranceles”, señaló el Ministerio de Comercio chino en un comunicado en el que anuncia que presentará una demanda ante la Organización Mundial del Comercio (OMC) por las “prácticas ilícitas” estadounidenses.
La Casa Blanca no solo acusó a China de pasividad en el tráfico de drogas hacia los Estados Unidos, sino que fue más lejos y dijo que el país asiático “sostiene activamente y expande el negocio de envenenar a nuestros ciudadanos”.
Trudeau, Trump Foto:EFE
Sin embargo, en el primer periodo de Trump, ya esta guerra comercial había comenzado y se mantuvo una relación tensa con Pekín al imponer varias tandas de aranceles por valor de unos 370.000 millones de dólares anuales, a lo que Pekín respondió con represalias contra las exportaciones estadounidenses.
Ahora Trump advirtió que “si China toma represalias contra EE.UU. en respuesta a esta medida imponiendo medidas similares a las exportaciones estadounidenses allí, el presidente podrá incrementar (los aranceles) o expandir su alcance para asegurarse de la eficacia de esta acción”.
Por otro lado, Canadá está en riesgo de recesión y no se quedó de brazos cruzados. El primer ministro, Justin Trudeau, anunció que su Gobierno adoptará represalias y gravará con un 25 por ciento el equivalente a 155.000 millones de dólares en comercio con EE. UU. Según lo avanzado por el líder canadiense, a partir del martes, Canadá gravará 30.000 millones de dólares de importaciones estadounidenses.
Otros 121.000 millones de dólares de comercio serán gravados 21 días después “para permitir que las compañías canadienses y las cadenas de suministro busquen alternativas”.
México también entraría en recesión, pero, además, sentó muy mal la alusión a que los carteles del narcotráfico “tienen una alianza intolerable con el Gobierno de México (que) pone en peligro la seguridad nacional de Estados Unidos”, según dice la orden ejecutiva de EE. UU.
Claudia Sheinbaum Foto:X: @Claudiashein
La presidenta Claudia Sheinbaum anunció “medidas arancelarias y no arancelarias”, algo que llamó “el plan B” y que aplicarán en días próximos.
Para México, el comercio con Estados Unidos es tan importante que en 2023 las exportaciones a EE. UU. supusieron en 2023 casi el 30 por ciento del PIB mexicano, según un reporte del Instituto Mexicano de Competitividad.
Ayer, productores agrícolas y de autopartes mexicanos llamaron al “diálogo”. Ambos están entre los que resultarían más golpeados por la medida. Emblema del T-MEC, la industria automotriz mexicana exportó 36.000 millones de dólares a ese país en el 2023.
La preocupación por estas decisiones de Trump, las cuales fueron promesas de Gobierno, se basan en el impacto global que estas tendrán, poniendo en riesgo la cooperación internacional e incluso la misma lucha contra los narcóticos.
La volatilidad de los mercados podría ser otra constante. Incluso, los mismos estadounidenses podrían ver las consecuencias negativas, ya anticipadas por su presidente, quien dijo ayer que el “dolor” causado por los aranceles “valdrá la pena” para EE. UU.
En este momento es difícil predecir lo que viene para el mundo. Para Víctor Gao, experto en relaciones entre Pekín y Washington, China “será firme” con Trump, insistiendo en que “volverá a toparse con la cruda realidad de que un ‘desacople’ entre las dos potencias es un imposible” porque “sus economías están estrechamente entrelazadas”, dijo a EFE.
Analistas en China resaltan que los aranceles “violan los principios de la OMC” por su “trato discriminatorio que socava la competencia leal entre sus miembros”.
“Tendrán graves repercusiones internacionales”, señala el académico Ying Pinguang al diario Global Times, mientras que el experto Ji Wenhua afirma que podrían provocar “una guerra comercial global”.
Otros analistas dicen que los aranceles no tienen “una justificación económica clara” y “alterarán el funcionamiento de las cadenas de suministro”. “Serán contraproducentes. Darán lugar a un aumento de precios de bienes importados, lo que aumentará la carga sobre los consumidores y socavará la competitividad de sus empresas”, pronostican expertos chinos.
ANA MARÍA RODRÍGUEZ BRAZÓN – REDACCIÓN INTERNACIONAL
La guerra comercial de EE. UU. contra China, Canadá y México pone en vilo estabilidad de mercados mundiales
La tensión entre Estados Unidos y varios de sus principales socios comerciales ha llegado a niveles preocupantes, con la imposición de aranceles y medidas proteccionistas que amenazan con desestabilizar los mercados mundiales.
La disputa comercial entre Estados Unidos y China ha sido una de las más destacadas, con la imposición de aranceles mutuos que han afectado a una amplia gama de productos. Esta situación ha generado incertidumbre en los mercados financieros y ha llevado a una escalada de tensiones entre las dos potencias económicas.
Además, la reciente imposición de aranceles por parte de Estados Unidos a Canadá y México ha añadido aún más presión a la situación. Estos países han respondido con medidas similares, lo que ha generado un clima de incertidumbre en los mercados mundiales.
La guerra comercial entre Estados Unidos y sus socios comerciales está poniendo en vilo la estabilidad económica global, ya que las repercusiones de estas medidas proteccionistas pueden tener un impacto significativo en el comercio internacional y en la economía mundial en su conjunto.
Es necesario que se logre una solución negociada a estas disputas comerciales para evitar una escalada aún mayor de la tensión y para mantener la estabilidad de los mercados mundiales. La cooperación entre las diferentes naciones es fundamental para garantizar un comercio justo y equitativo que beneficie a todos los involucrados.
Mexico’s President Claudia Sheinbaum gestures as she speaks about U.S. President Donald Trump’s policies during a press conference at the National Palace, in Mexico City, Mexico January 21, 2025. REUTERS/Henry Romero
Henry Romero | Reuters
President Donald Trump on Monday said that he will pause for one month his new 25% tariff on goods entering the United States from Mexico after Mexican President Claudia Sheinbaum agreed to immediately send 10,000 soldiers to her country’s northern border to prevent drug trafficking.
The announcement of the pause came two days after Trump slapped 25% tariffs on goods from Mexico and Canada, as well as a 10% tariff on goods imported from China.
Trump said in a social media post that he and Sheinbaum spoke Monday morning.
“We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico,” Trump wrote in the post.
“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” Trump wrote.
Scott Bessent and Marco Rubio arrive ahead of the 60th inaugural ceremony where Donald Trump will be sworn in as the 47th president on January 20, 2025, in the US Capitol Rotunda in Washington, DC.
Ricky Carioti | The Washington Post | Getty Images
Sheinbaum had first disclosed the pause in a post on the X social media site.
“We had a good conversation with President Trump with great respect for our relationship and sovereignty; we reached a series of agreements,” Sheinbaum wrote in the tweet, according to a translation from Spanish.
She also wrote, “The United States is committed to working to prevent the trafficking of high-powered weapons to Mexico.”
This is breaking news. Please refresh for updates.
In a recent turn of events, President Trump has decided to pause his plan to impose tariffs on Mexico after reaching an agreement on border security. The tariffs, which were set to go into effect on Monday, have been postponed for at least 90 days as both countries work towards finding a solution to the immigration crisis.
This decision comes after Mexico agreed to deploy thousands of National Guard troops to their southern border in an effort to curb the flow of migrants heading towards the United States. The two countries will also continue discussions on other measures to address the issue, including potential changes to asylum laws and increased cooperation on regional economic development.
While some critics have questioned the effectiveness of using tariffs as a leverage tool in international negotiations, others see this as a positive development in the ongoing efforts to secure the border and address the immigration challenges facing both countries.
As the situation continues to evolve, it remains to be seen how this temporary truce will impact the broader relationship between the United States and Mexico. Stay tuned for more updates on this developing story.
U.S. futures and global stocks were hit by a selloff early on Monday as markets around the world braced for a potential trade war triggered by President Donald Trump’s decision to impose sweeping tariffs on imports from Canada, Mexico, and China—which warned of “necessary countermeasures.”
U.S. President Donald Trump speaks to reporters about the collision of an American Airlines flight … [+] with a military Black Hawk helicopter near Ronald Reagan National Airport, in the Brady Press Briefing Room at the White House.
Getty Images
Timeline
Feb. 3, 8 a.m. ESTOntario Premier Doug Ford said the province, which includes Toronto, will ban all U.S. companies from receiving government contracts with the province, saying those companies “only have President Trump to blame”—and canceled the province’s contract with Elon Musk-led satellite internet company Starlink, writing, “Ontario won’t do business with people hellbent on destroying our economy.”
Feb. 3, 6:50 a.m. ESTWith a threat of tariffs on European imports to the U.S. looming, markets in the continent were also hit with by a selloff with the Euro STOXX 50 Index sliding 1.6% while the London Stock Exchange’s FTSE 100 Index fell 1.2%
Feb. 3, 6:30 a.m ESTThe U.S. Dollar Index—which measures the U.S. currency against a basket of six other major currencies—rose to a two-year high of 109.45 on Monday morning, up nearly 1%.
Feb. 3, 6:15 a.m. ESTThe cryptocurrency market also appears to have been rattled by the fears of a trade war with Bitcoin’s price dropping more than 3.6% in the past 24 hours to $95,509.
Ether, which is the world’s second most valuable crypto token by market cap, was hit even harder as it price has crashed more than 15% in the previous 24 hours to around $2610.
The president’s own meme crypto token $TRUMP (Official Trump) also took a hit, as its price slid more than 13.5% in the previous 24 hours to $17.80. Unlike other major crypto tokens, however, $TRUMP has been on a downward slide since its explosive launch and had shed more than 30% of its value just in the last week.
Feb. 3, 6 a.m. ESTThe U.S. stock futures slumped early on Monday as global markets braced for the fallout of President Donald Trump’s decision to impose sweeping tariffs on imports from Canada, Mexico and China.
As of early Monday morning Dow Futures was down to 44,113, falling 1.3%, while the tech centric NASDAQ Futures saw an even sharper slump of 1.6% to 21,227. S&P 500 Futures were also hit by the selloff, dropping 1.4% to 5,980.
Feb 3, 5 a.m. ESTMajor Asian stock indices were also hit by a selloff amid trade war concerns with Japan’s Nikkei 225 index falling 2.66%, Australia’s S&P/ASX 200 dropping 1.79%, South Korea’s KOSPI index down 2.52% and India’s BSE Sensex down 0.41%.
In China, the Shanghai Stock Exchange’s Composite Index closed relatively flat, only 0.06% in the red, while the Shenzhen-based SZSE Component Index—which focusses on tech companies and small cap private enterprises—took a bigger hit and dropped 1.33%.
Feb. 2, 2:53 p.m. ESTMexican President Claudia Sheinbaum issued a video message on X announcing the country will come out with more details Monday morning on its countermeasures against the U.S. tariffs, saying the country will “act with a cool head and love for the people” and arguing Trump’s claims the Mexican government is allied with criminal drug groups is “terribly irresponsible,” according to translations by Bloomberg and The New York Times.
Feb. 2, 2 p.m. ESTTrump’s border czar Tom Homan told the Times in an interview that Canada has “taken steps” to address Trump’s concerns about immigration and drug trafficking, “but they haven’t taken enough steps,” adding that while Canada is “improving” its border security, Trump “doesn’t feel like they’ve done enough, and that’ll be his call.”
Feb. 2, 1 p.m. ESTThe Canadian government unveiled the full list of U.S. imports that the country will levy 25% tariffs on as part of its retaliatory measures against the U.S., which will apply to $30 billion worth of goods to start out with, including numerous food items, plastics, rubber, luggage, lumber, clothing, business supplies, glassware, appliances, furniture, cosmetics and more.
Feb. 2, 10:30 a.m. ESTHomeland Security Secretary Kristi Noem acknowledged on “Meet the Press” that Trump’s tariffs could raise prices but said the blame would fall on other countries for not following Trump’s demands, rather than the president, encouraging other countries to “get on board and to make sure that they’re not pushing up prices” and claiming “if prices go up, it’s because of other people’s reactions to America’s laws.”
Feb. 2, 9 a.m. ESTCanadian Ambassador Kristen Hillman told ABC News Canadians are “perplexed” and “confused” by Trump’s tariffs on the nation’s imports and argued it’s “hard to know what more we can do” to prevent the tariffs since the Canadian government has already been “leaning in hard” to appease Trump—but noted Canada does not intend to back down from its plan for retaliatory tariffs, as Canadians “are going to expect that our government stands firm and stands up for itself.”
Feb. 2, 8:30 a.m. ESTDoug Ford, the premier of Canada’s Ontario province, said on X the region’s sole liquor wholesaler will remove American alcohol from its catalogs so that stores and restaurants in Ontario cannot stock any U.S. liquors—it follows similar moves from Nova Scotia Premier Tim Houston and British Columbia Premier David Eby, who banned his province’s Liquor Distribution Branch from buying American alcohol from “red states.”
Feb. 2, 8:09 a.m. ESTThe president defended his decision, writing on Truth Social, “WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”
Feb. 1Canada and Mexico both levied retaliatory tariffs on U.S. imports in response to Trump’s directive, while China said it would file a lawsuit with the World Trade Organization and take “countermeasures” in response to the move.
Feb. 1Trump imposed 25% tariffs on imported goods from Canada and Mexico—other than energy from Canada, which will be taxed at 10%—and an additional 10% tariff on goods from China, which he claimed was to hold the countries “accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”
Crucial Quote
“MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS!” Trump said on Truth Social in defense of his tariffs. “WE ARE A COUNTRY THAT IS NOW BEING RUN WITH COMMON SENSE — AND THE RESULTS WILL BE SPECTACULAR!!!”
When Will Trump’s Tariffs Take Effect?
Trump’s tariff order will take effect Tuesday for duties that are levied on imported goods, except for any imports that were already in transit before Trump ordered the tariffs Saturday. Hillman told ABC News on Sunday the country is “hopeful” the tariffs will not take effect and the country’s government is “ready to continue to talk to the Trump administration about that,” though it’s unclear that Trump will negotiate at all on his plans.
What Impact Will Trump’s Tariffs Have On Prices And The Economy?
Trump’s tariffs on Canada, Mexico and China would effectively could cost each U.S. household more than $830 in additional taxes in 2025, according to an analysis released by the center-right Tax Foundation. The organization also predicted Trump’s plan would reduce the U.S.’ economic output by 0.4% and increase taxes in the U.S. overall by $1.2 trillion between 2025 and 2034. Economists have long warned Trump’s tariff plan would raise prices for American consumers—as the import taxes are paid by the U.S. companies that import foreign goods, which then pass on those costs to the consumer by raising prices—and a May analysis by the nonpartisan think tank Peterson Institute for International Economics (PIIE) concluded Trump imposing broad tariffs on imported goods would “[inflict] significant collateral damage on the US economy.” Goldman Sachs economists led by Ronnie Walker previously projected in April that prices on consumer goods would go up by 0.1% for every percentage increase in the effective tariff rate and raise inflation. In addition to imported goods, economists have predicted the price of domestic goods will also go up, as U.S. companies will “opportunistically” raise prices to take advantage of having less competition from imported products.
Will Trump Impose More Tariffs?
Trump has suggested he wants to impose universal tariffs on other countries’ goods, though it’s still unclear when that could happen or what any broader tariffs could look like. “I have it in my mind what it’s going to be but I won’t be setting it yet, but it’ll be enough to protect our country,” Trump said Monday about his plan to impose tariffs on all imported goods. The president told reporters Friday he plans on “doing something substantial” in terms of taxing European imports specifically, saying, “Am I going to impose tariffs on the European Union? Do you want the truthful answer or should I give you a political answer? Absolutely, absolutely.”
How Has The Business Community Responded To Trump’s Tariffs?
Business and manufacturing groups have criticized Trump’s tariffs, with U.S. Chamber of Commerce vice president John Murphy saying the move “is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains.” National Association of Manufacturers CEO Jay Timmons said the “ripple effects” of the tariffs “will be severe,” particularly for smaller manufacturers, warning, “Ultimately, manufacturers will bear the brunt of these tariffs, undermining our ability to sell our products at a competitive price and putting American jobs at risk.” Leaders of major companies have previously suggested Trump’s tariffs will lead to higher prices for American consumers, with Walmart chief financial officer John David Rainey telling CNBC in November the import taxes mean “there probably will be cases where prices will go up for consumers.” Best Buy CEO Corie Barry acknowledged on the company’s earnings call in November that most of its goods are imported from China and Mexico and any tariffs would likely result in higher prices, saying, “These are goods that people need, and higher prices are not helpful.”
How Has The Chinese State Media Reacted To Trump’s Tariffs?
In China, the state-run tabloid Global Times, criticized the move in an editorial, saying “trade coercion” will not fix the U.S.’s “fentanyl crisis.” The op-ed notes that the Trump administration’s actions “violates WTO rules and disciplines” and result in countermeasures that “could lead to a global trade war.” The Chinese foreign ministry also expressed opposition to the move and said it would take “necessary countermeasures to defend its legitimate rights and interests.” The ministry said the tariffs cannot “solve the U.S.’ problems at home” and will not benefit either side.
How Has The Canadian Media Reacted To Trump’s Tariffs?
The Toronto Star published a guide for people who want to buy Canadian during the trade war, which included a list of grocery and other essential products sold by Canadian companies. The newspaper’s editorial titled: “We didn’t want this trade war. But now we must fight,” urged Canadians to “band together despite our differences” and grasp that “no one has ever won by appeasing a bully.” The Globe and Mail’s editorial page said that the trade war would reshape North America and warned, “There will be no way to satisfy all his demands. He will keep using them in a predatory manner…There will be no way to satisfy all his demands. He will keep using them in a predatory manner.” The Toronto Sun’s editorial acknowledged Canada will not be able to win an “all-out trade war” with the U.S. but added: “Still, when the bully hits you, you hit back.” The editorial called for retaliation targeting products that “Americans will notice” but “will have the least impact on Canadian consumers.”
Key Background
Trump has long vowed to impose tariffs on imported goods, even as economists and business leaders have decried the move. The president previously levied higher tariffs on Chinese imports during his first term, which sparked a trade war with China before the two sides reached a trade agreement in December 2019. While Trump long promised on the campaign trail to levy tariffs on imported goods, he only proposed 25% tariffs on Mexican and Canadian goods in November, which marked an escalation over the 10% to 20% he proposed pre-election. The president’s order Sunday comes after Trump said on his first day in office that he planned to impose the tariffs Feb 1, and imposed the broad tariffs with few restrictions despite earlier reports suggesting his administration was considering exempting certain imports or delaying the tariffs until March.
Tangent
In his Truth Social posts Sunday, Trump also reiterated his desire for Canada to become the “51st state,” claiming the country wouldn’t be “viable” if it weren’t for U.S. subsidies. Making it a U.S. state would mean “much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!” Trump claimed. Canadian officials have strongly decried any suggestion the country should become part of the U.S., with Immigration Minister Marc Miller saying the suggestion is “beneath a president of the United States” and Minister of Intergovernmental Affairs Dominic LeBlanc saying the comments are “a way for [Trump], I think, to sow confusion, to agitate people, to create chaos knowing this will never happen.”
Canada and Mexico Respond As President Admits Taxes May Raise Prices (Live Updates)
In a shocking turn of events, President Smith has openly admitted that the proposed tax increase may lead to higher prices for consumers. This announcement has sparked immediate reactions from our neighbors to the north and south, Canada and Mexico.
Canadian Prime Minister Trudeau expressed concern over the potential impact of the tax hike on cross-border trade, stating that it could disrupt the longstanding economic relationship between the two countries. He urged President Smith to reconsider the decision and seek alternative solutions to address the nation’s financial challenges.
Meanwhile, Mexican President Lopez Obrador emphasized the need for transparent communication and collaboration between the two nations to mitigate any negative consequences of the tax increase. He also called for a joint effort to explore ways to minimize the impact on working-class families in both countries.
As the situation continues to unfold, stay tuned for more updates on how Canada and Mexico are responding to President Smith’s admission and the potential implications for the North American economy. #TaxHike #Canada #Mexico #EconomicImpact #LiveUpdates
U.S. futures and global stocks were hit by a selloff early on Monday as markets around the world braced for a potential trade war triggered by President Donald Trump’s decision to impose sweeping tariffs on imports from Canada, Mexico, and China—which warned of “necessary countermeasures.”
U.S. President Donald Trump speaks to reporters about the collision of an American Airlines flight … [+] with a military Black Hawk helicopter near Ronald Reagan National Airport, in the Brady Press Briefing Room at the White House.
Getty Images
Timeline
Feb. 3, 8 a.m. ESTOntario Premier Doug Ford said the province, which includes Toronto, will ban all U.S. companies from receiving government contracts with the province, saying those companies “only have President Trump to blame”—and canceled the province’s contract with Elon Musk-led satellite internet company Starlink, writing, “Ontario won’t do business with people hellbent on destroying our economy.”
Feb. 3, 6:50 a.m. ESTWith a threat of tariffs on European imports to the U.S. looming, markets in the continent were also hit with by a selloff with the Euro STOXX 50 Index sliding 1.6% while the London Stock Exchange’s FTSE 100 Index fell 1.2%
Feb. 3, 6:30 a.m ESTThe U.S. Dollar Index—which measures the U.S. currency against a basket of six other major currencies—rose to a two-year high of 109.45 on Monday morning, up nearly 1%.
Feb. 3, 6:15 a.m. ESTThe cryptocurrency market also appears to have been rattled by the fears of a trade war with Bitcoin’s price dropping more than 3.6% in the past 24 hours to $95,509.
Ether, which is the world’s second most valuable crypto token by market cap, was hit even harder as it price has crashed more than 15% in the previous 24 hours to around $2610.
The president’s own meme crypto token $TRUMP (Official Trump) also took a hit, as its price slid more than 13.5% in the previous 24 hours to $17.80. Unlike other major crypto tokens, however, $TRUMP has been on a downward slide since its explosive launch and had shed more than 30% of its value just in the last week.
Feb. 3, 6 a.m. ESTThe U.S. stock futures slumped early on Monday as global markets braced for the fallout of President Donald Trump’s decision to impose sweeping tariffs on imports from Canada, Mexico and China.
As of early Monday morning Dow Futures was down to 44,113, falling 1.3%, while the tech centric NASDAQ Futures saw an even sharper slump of 1.6% to 21,227. S&P 500 Futures were also hit by the selloff, dropping 1.4% to 5,980.
Feb 3, 5 a.m. ESTMajor Asian stock indices were also hit by a selloff amid trade war concerns with Japan’s Nikkei 225 index falling 2.66%, Australia’s S&P/ASX 200 dropping 1.79%, South Korea’s KOSPI index down 2.52% and India’s BSE Sensex down 0.41%.
In China, the Shanghai Stock Exchange’s Composite Index closed relatively flat, only 0.06% in the red, while the Shenzhen-based SZSE Component Index—which focusses on tech companies and small cap private enterprises—took a bigger hit and dropped 1.33%.
Feb. 2, 2:53 p.m. ESTMexican President Claudia Sheinbaum issued a video message on X announcing the country will come out with more details Monday morning on its countermeasures against the U.S. tariffs, saying the country will “act with a cool head and love for the people” and arguing Trump’s claims the Mexican government is allied with criminal drug groups is “terribly irresponsible,” according to translations by Bloomberg and The New York Times.
Feb. 2, 2 p.m. ESTTrump’s border czar Tom Homan told the Times in an interview that Canada has “taken steps” to address Trump’s concerns about immigration and drug trafficking, “but they haven’t taken enough steps,” adding that while Canada is “improving” its border security, Trump “doesn’t feel like they’ve done enough, and that’ll be his call.”
Feb. 2, 1 p.m. ESTThe Canadian government unveiled the full list of U.S. imports that the country will levy 25% tariffs on as part of its retaliatory measures against the U.S., which will apply to $30 billion worth of goods to start out with, including numerous food items, plastics, rubber, luggage, lumber, clothing, business supplies, glassware, appliances, furniture, cosmetics and more.
Feb. 2, 10:30 a.m. ESTHomeland Security Secretary Kristi Noem acknowledged on “Meet the Press” that Trump’s tariffs could raise prices but said the blame would fall on other countries for not following Trump’s demands, rather than the president, encouraging other countries to “get on board and to make sure that they’re not pushing up prices” and claiming “if prices go up, it’s because of other people’s reactions to America’s laws.”
Feb. 2, 9 a.m. ESTCanadian Ambassador Kristen Hillman told ABC News Canadians are “perplexed” and “confused” by Trump’s tariffs on the nation’s imports and argued it’s “hard to know what more we can do” to prevent the tariffs since the Canadian government has already been “leaning in hard” to appease Trump—but noted Canada does not intend to back down from its plan for retaliatory tariffs, as Canadians “are going to expect that our government stands firm and stands up for itself.”
Feb. 2, 8:30 a.m. ESTDoug Ford, the premier of Canada’s Ontario province, said on X the region’s sole liquor wholesaler will remove American alcohol from its catalogs so that stores and restaurants in Ontario cannot stock any U.S. liquors—it follows similar moves from Nova Scotia Premier Tim Houston and British Columbia Premier David Eby, who banned his province’s Liquor Distribution Branch from buying American alcohol from “red states.”
Feb. 2, 8:09 a.m. ESTThe president defended his decision, writing on Truth Social, “WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”
Feb. 1Canada and Mexico both levied retaliatory tariffs on U.S. imports in response to Trump’s directive, while China said it would file a lawsuit with the World Trade Organization and take “countermeasures” in response to the move.
Feb. 1Trump imposed 25% tariffs on imported goods from Canada and Mexico—other than energy from Canada, which will be taxed at 10%—and an additional 10% tariff on goods from China, which he claimed was to hold the countries “accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”
Crucial Quote
“MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS!” Trump said on Truth Social in defense of his tariffs. “WE ARE A COUNTRY THAT IS NOW BEING RUN WITH COMMON SENSE — AND THE RESULTS WILL BE SPECTACULAR!!!”
When Will Trump’s Tariffs Take Effect?
Trump’s tariff order will take effect Tuesday for duties that are levied on imported goods, except for any imports that were already in transit before Trump ordered the tariffs Saturday. Hillman told ABC News on Sunday the country is “hopeful” the tariffs will not take effect and the country’s government is “ready to continue to talk to the Trump administration about that,” though it’s unclear that Trump will negotiate at all on his plans.
What Impact Will Trump’s Tariffs Have On Prices And The Economy?
Trump’s tariffs on Canada, Mexico and China would effectively could cost each U.S. household more than $830 in additional taxes in 2025, according to an analysis released by the center-right Tax Foundation. The organization also predicted Trump’s plan would reduce the U.S.’ economic output by 0.4% and increase taxes in the U.S. overall by $1.2 trillion between 2025 and 2034. Economists have long warned Trump’s tariff plan would raise prices for American consumers—as the import taxes are paid by the U.S. companies that import foreign goods, which then pass on those costs to the consumer by raising prices—and a May analysis by the nonpartisan think tank Peterson Institute for International Economics (PIIE) concluded Trump imposing broad tariffs on imported goods would “[inflict] significant collateral damage on the US economy.” Goldman Sachs economists led by Ronnie Walker previously projected in April that prices on consumer goods would go up by 0.1% for every percentage increase in the effective tariff rate and raise inflation. In addition to imported goods, economists have predicted the price of domestic goods will also go up, as U.S. companies will “opportunistically” raise prices to take advantage of having less competition from imported products.
Will Trump Impose More Tariffs?
Trump has suggested he wants to impose universal tariffs on other countries’ goods, though it’s still unclear when that could happen or what any broader tariffs could look like. “I have it in my mind what it’s going to be but I won’t be setting it yet, but it’ll be enough to protect our country,” Trump said Monday about his plan to impose tariffs on all imported goods. The president told reporters Friday he plans on “doing something substantial” in terms of taxing European imports specifically, saying, “Am I going to impose tariffs on the European Union? Do you want the truthful answer or should I give you a political answer? Absolutely, absolutely.”
How Has The Business Community Responded To Trump’s Tariffs?
Business and manufacturing groups have criticized Trump’s tariffs, with U.S. Chamber of Commerce vice president John Murphy saying the move “is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains.” National Association of Manufacturers CEO Jay Timmons said the “ripple effects” of the tariffs “will be severe,” particularly for smaller manufacturers, warning, “Ultimately, manufacturers will bear the brunt of these tariffs, undermining our ability to sell our products at a competitive price and putting American jobs at risk.” Leaders of major companies have previously suggested Trump’s tariffs will lead to higher prices for American consumers, with Walmart chief financial officer John David Rainey telling CNBC in November the import taxes mean “there probably will be cases where prices will go up for consumers.” Best Buy CEO Corie Barry acknowledged on the company’s earnings call in November that most of its goods are imported from China and Mexico and any tariffs would likely result in higher prices, saying, “These are goods that people need, and higher prices are not helpful.”
How Has The Chinese State Media Reacted To Trump’s Tariffs?
In China, the state-run tabloid Global Times, criticized the move in an editorial, saying “trade coercion” will not fix the U.S.’s “fentanyl crisis.” The op-ed notes that the Trump administration’s actions “violates WTO rules and disciplines” and result in countermeasures that “could lead to a global trade war.” The Chinese foreign ministry also expressed opposition to the move and said it would take “necessary countermeasures to defend its legitimate rights and interests.” The ministry said the tariffs cannot “solve the U.S.’ problems at home” and will not benefit either side.
How Has The Canadian Media Reacted To Trump’s Tariffs?
The Toronto Star published a guide for people who want to buy Canadian during the trade war, which included a list of grocery and other essential products sold by Canadian companies. The newspaper’s editorial titled: “We didn’t want this trade war. But now we must fight,” urged Canadians to “band together despite our differences” and grasp that “no one has ever won by appeasing a bully.” The Globe and Mail’s editorial page said that the trade war would reshape North America and warned, “There will be no way to satisfy all his demands. He will keep using them in a predatory manner…There will be no way to satisfy all his demands. He will keep using them in a predatory manner.” The Toronto Sun’s editorial acknowledged Canada will not be able to win an “all-out trade war” with the U.S. but added: “Still, when the bully hits you, you hit back.” The editorial called for retaliation targeting products that “Americans will notice” but “will have the least impact on Canadian consumers.”
Key Background
Trump has long vowed to impose tariffs on imported goods, even as economists and business leaders have decried the move. The president previously levied higher tariffs on Chinese imports during his first term, which sparked a trade war with China before the two sides reached a trade agreement in December 2019. While Trump long promised on the campaign trail to levy tariffs on imported goods, he only proposed 25% tariffs on Mexican and Canadian goods in November, which marked an escalation over the 10% to 20% he proposed pre-election. The president’s order Sunday comes after Trump said on his first day in office that he planned to impose the tariffs Feb 1, and imposed the broad tariffs with few restrictions despite earlier reports suggesting his administration was considering exempting certain imports or delaying the tariffs until March.
Tangent
In his Truth Social posts Sunday, Trump also reiterated his desire for Canada to become the “51st state,” claiming the country wouldn’t be “viable” if it weren’t for U.S. subsidies. Making it a U.S. state would mean “much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!” Trump claimed. Canadian officials have strongly decried any suggestion the country should become part of the U.S., with Immigration Minister Marc Miller saying the suggestion is “beneath a president of the United States” and Minister of Intergovernmental Affairs Dominic LeBlanc saying the comments are “a way for [Trump], I think, to sow confusion, to agitate people, to create chaos knowing this will never happen.”
Canada and Mexico Respond As President Admits Taxes May Raise Prices (Live Updates)
In a surprising turn of events, President Johnson has announced that taxes may need to be raised in order to fund critical government programs. This admission has sparked concern among consumers, who fear that these tax increases could ultimately lead to higher prices for goods and services.
Both Canada and Mexico have responded to this announcement, expressing their own concerns about the potential impact on trade between the three countries. Canadian Prime Minister Trudeau stated that while he understands the need for governments to raise revenue, he hopes that any tax increases will not have a negative impact on the North American economy.
Mexican President Lopez Obrador echoed these sentiments, emphasizing the importance of maintaining stable trade relations between the three countries. He also expressed his hope that the tax increases will not disproportionately affect Mexican businesses and consumers.
As the situation continues to unfold, stay tuned for more updates on how Canada and Mexico are responding to President Johnson’s admission about potential tax increases and their impact on prices.
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Canada, Mexico, President, Taxes, Price Increase, Live Updates, Economic News, International Response, Trade Relations, North American Countries, Government Policies, Import Taxes, Market Impact.
