- In the United States to prevent high-power arms trafficking in Mexico.
- Trump to engage in negotiations with President Sheinbaum.
- The surprise announcement relieves a certain pressure on the peso of Mexico.
Washington / Brussels: US President Donald Trump has paused for new prices on Mexico for a month after Mexico agreed to strengthen its northern border with 10,000 members of the National Guard to stem the flow of illegal drugs, in Particular fentanyl, he said on Monday.
The agreement also includes an American commitment to act to prevent the traffic of high power weapons in Mexico, said Mexican president Claudia Sheinbaum on X. The two leaders spoke by telephone on Monday, just a few hours before the American rates On Mexico, China and Canada are not fixed to take effect.
The two countries will use one month suspension to initiate new negotiations, said Trump.
“I can’t wait to participate in these negotiations, with President Sheinbaum, while we are trying to conclude an” agreement “between our two countries,” he wrote on Truth Social.
“” We have this month to work and convince ourselves that this is the best way to follow, “said Sheinbaum at a press conference.
The American actions, which had dropped strongly on Monday morning on fears of an approval of the trade war, made their losses following the announcement. The S&P 500 reference fell by 0.7% around 10:45 a.m. (1545 GMT), reducing its losses in half.
The surprise announcement also relieved part of the pressure on the Peso of Mexico.
Trump said on Monday that he spoke with Canadian Prime Minister Justin Trudeau and would do it again at 3 p.m. (2000 GMT). Prices on Canada and China are ready to take effect on Tuesday and Canada announced reprisal prices.
A senior Canadian official told a New York Times Journalist that Ottawa is not optimistic, a similar stay is in sight, said the journalist on X.
Speaking in Washington Sunday after his return from his Mar-A-Lago domain, Trump said that the European Union of 27 countries would be the next in the shooting line, but did not say when.
“They don’t take our cars, they don’t take our agricultural products. They take almost nothing and we take everything,” he told journalists.
EU leaders meeting at an informal summit in Brussels on Monday said that Europe would be ready to retaliate if the United States imposed prices, but also called for reason and negotiation.
Arriving at talks, French President Emmanuel Macron said that if the EU was attacked in his commercial interests, “being respected and thus reacting”.
Chancellor Olaf Scholz of Germany said that the block could respond if necessary with its own prices against the United States, but stressed that it was better for both to find a trade agreement.
Trump hinted that Great Britain, which left the EU in 2020, could be tariffs, saying: “I think we can be developed”.
The United States is the largest commercial and investment partner in the EU. According to Eurostat data from 2023, the United States had a deficit of 155.8 billion euros (161.6 billion dollars) with the EU in the goods trade, offset by a 104 billion surplus euros in services.
The head of the EU foreign policy, Kaja Kallas, said that there were no winners in a trade war, and if one broke out between Europe and the United States, “then Whoever laughs on the side is China “.
The markets vanish
Economists say that the Republican President’s plan to impose 25% prices in Canada and Mexico and that 10% prices in China would slow up global growth and increase higher prices for Americans.
Trump says they are necessary to curb immigration and drug trafficking and stimulating national industries.
The financial market reaction reflected concerns on Monday concerning the fallout from a trade war. Tokyo’s shares ended the day down almost 3% and the reference of Australia – often a proxy trade for Chinese markets – dropped by 1.8%. The continental China market has been closed for the New Year’s lunar holidays.
Around lunchtime in Europe, the Dax index of Germany fell 1.8%, the French CAC dropped by 1.9% and the FTSE 100 of Great Britain down 1.5 %.
The Chinese yuan, the Canadian dollar and the Mexican peso have all collapsed against a dollar arrow. With Canada and Mexico, the main sources of us. Imports of crude oil, US oil prices CLC1 have jumped by more than 1%, while RBC1’s term contracts increased by almost 3%.
Trump’s prices cover almost half of all American imports and would force the United States more than double its own manufacturing production to fill the gap – a short -term task, Ing analysts wrote.
Other analysts have said that prices could throw Canada and Mexico into the recession and trigger “stagflation” – high inflation, stagnant growth and high unemployment – at home.
In Europe, Deutsche Bank economists said they were currently taking a 0.5% stroke of gross domestic product (GDP) if Trump imposed 10% tariffs on the block.
National emergency
An information sheet of the White House has not given any details on what Canada, Mexico and China should do to win a stay.
Trump promised to maintain the sanctions in place until he describes as a national emergency on fentanyl, a deadly opioid and illegal immigration to the United States ends.
China has called the fentanyl america problem and said it would challenge the World Trade Organization for other countermeasures, but also left the door open to the interviews.
Canada said it would take legal action under the international organizations concerned to challenge the prices.
Car manufacturers would be particularly affected, with new prices on vehicles built in Canada and Mexico, in charge of a large regional supply chain where the parts can cross borders several times before the final assembly. The Ford FN and General Motors GM.N shares have dropped between 4% and 5%.
