Following a phone call with US President Donald Trump, both Canada and Mexico have agreed to adopt measures to curb the flow of illegal drugs and immigration into the US.
Crypto markets experienced a sharp rebound after Trump decided to delay the proposed tariffs on Canada and Mexico as negotiations between the US and these countries continue.
In a statement on Feb. 3 via X, Canadian Prime Minister Justin Trudeau announced that, after discussions with Trump, the planned 25% tariffs would be postponed for at least 30 days, during which the two countries would collaborate more closely.
Trudeau mentioned that Canada would strengthen “coordination with our American partners” by implementing a $1.3 billion border security plan. This includes appointing a Fentanyl czar, designating cartels as terrorist organizations, and bolstering the US-Canada border with additional personnel and helicopters.
Mexico’s tariffs have also been postponed for one month. Mexican President Claudia Sheinbaum shared in a statement on Feb. 3 via X that both leaders had “reached a series of agreements,” focusing on strengthening the shared border between the two nations.
“Our teams will begin work today on two fronts: security and trade. Tariffs will be paused for a month starting now,” Sheinbaum said.
In a Feb. 3 interview with Bloomberg TV, Trump stated that while the US and Mexico have not yet reached a final agreement on tariffs, they may still be imposed.
Trump’s Feb. 1 executive order also placed a 10% tariff on China, which has not yet been delayed. According to a Feb. 3 Wall Street Journal report, the Chinese government is ready to engage in negotiations.
The Journal reports that China’s initial proposal involves reinstating the Phase 1 trade deal signed in 2020, which required China to increase US imports by $200 billion over two years.
Crypto-based prediction platform Polymarket has set odds at 24% for Trump fully removing tariffs on Mexico by March and a 22% chance for Canada’s tariffs to be lifted. Meanwhile, the odds of China’s tariffs being removed next month are just 9%.
