Donald Trump caves on tariff war with 30-day pause after £1bn border agreement

President Donald Trump's aggressive stance on trade deficits and border security with neighbouring countries seems to have yielded the desired outcome. Just days after threatening massive 25 per cent tariffs on goods from Mexico and Canada, both countries have acquiesced to Trump's demands in exchange for a 30-day reprieve from the looming trade war. The tariffs, announced on Friday, had sparked widespread alarm and threats of retaliatory measures from both countries. However, following a phone conversation with Trump, Canadian Prime Minister Justin Trudeau agreed to deploy 10,000 personnel to the border and allocate "increased resources" to stem the flow of the deadly opioid fentanyl into the United States.

Trudeau took to social media to reassure Canadians that the tariff war had been postponed, stating: "I just had a good call with President Trump. "Canada is implementing our $1.3 billion 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.". The staggering number of roughly 75,000 Americans succumbing to synthetic opioid overdoses annually is a grim statistic that Trump once campaigned heavily on, albeit with limited results.

White House officials swiftly declared a win over this deep-seated issue amidst significant flak for disrupting the economy, yet critics noted much of what was agreed upon had previously been unveiled by Canada's Trudeau in December, lacking substantial new measures to curb the illegal opioid market. However, it seems more robust action could be in the pipeline to combat drug smuggling operations. Speaking on the matter, Prime Minister Trudeau stated: "Nearly 10,000 frontline personnel are and will be working on protecting the border.

"In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organised crime, fentanyl and money laundering.". Trudeau also announced in his lengthy social media post: "I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million. Proposed tariffs will be paused for at least 30 days while we work together.".

Given that around 13 per cent of all US imports come from Canada, there's no question about the importance of this trading relationship for both sides. Together with Mexico, these immediate neighbours are responsible for just shy of 30 per cent of the entire US foreign trade volume, which currently goes hand in hand with considerable deficits. Donald Trump took to Truth Social, his own social media platform, to tout a win but didn't shy away from highlighting the US trade deficit with Canada as the next big issue on his list. He declared: "As president, it is my responsibility to ensure the safety of all Americans, and I am doing just that.

"I am very pleased with this initial outcome, and the tariffs announced on Saturday will be paused for a 30-day period to see whether or not a final economic deal with Canada can be structured.". The pause in trade tensions was announced shortly after Trump intensified his rhetoric, claiming the US trade deficit at the northern border amounted to "hundreds of billions" in subsidies to the Canadian economy. On this basis, he suggested that Canada should be annexed.

He said: "Without this massive subsidy, Canada ceases to exist as a viable Country. Harsh but true! Therefore, Canada should become our Cherished 51st State". On the front of international trade tiffs, Canada wasn't alone in bowing to Uncle Sam's pressures on Monday – Mexico's President Sheinbaum also fell in line after being faced with a hefty 25 per cent levy on imports. And, it seems Trump's intimidation tactics had an immediate effect, as Sheinbaum agreed to dispatch around 10,000 personnel to beef up border security, aiming to stem the tide of illegal drugs. In this bargain, the US commander-in-chief struck a 30-day ceasefire deal, vowing to curtail the stream of American firearms into Mexico, which have historically equipped some of the most ruthless cartels ferrying drugs across the frontier.

This marks the third country in as many weeks to fold in the face of a massive trade war, with Colombia folding almost immediately after Trump threatened similar tariffs if they did not take back deported migrants. A source within the White House is reported to have said: "There were a lot of doubters out there who seemed to forget we are the world's biggest economy. ". Get email updates with the day's biggest stories.