Agree shortly before the deadline
North American trade war for the time being
Canada and Mexico enter deals with Trump and thus calm the customs conflict. The agreements allow conclusions to be made that should also be interested in the governments of Germany and other EU countries.
A North American trade war with uncertain consequences for the global economy is averted – at least for the time being. US President Donald Trump, just a few hours before the threatened punitive tariffs came into force, of 25 percent on goods from neighboring countries Mexico and Canada, especially for concessions. For this he pushed the trade restrictions on for at least 30 days.
Trump used to use the tariffs as a lever for concessions – which are not completely new. Some were already in the room before taking office. With regard to the economically powerful rivals China, the US President did not let himself be talked about: Puncture tariffs of ten percent should come into force on all Chinese goods at midnight (local time).
Canada and Mexico are the most important trading partners in the USA – 2022 the trading volume was around 1.7 trillion euros. Thousands of companies and millions of jobs depend on the relationships between the countries.
Billions of dollars and thousands of soldiers
The Canadian Prime Minister Justin Trudeau announced that the retaliation duties announced by his government were now off the table on imports from the USA. “Canada implements our $ 1.3 billion (870 million euros) – the border is reinforced with new helicopters, technology and personnel, the coordination with our American partners is improved and resources are increased to stop the flow of fentanyl “, says Trudeau. In addition, almost 10,000 forces would continue to be used to secure the border and take further measures against cross -border crime.
In the United States, Fentany has led to a huge drug problem with tens of thousands of dead in recent years. According to the US institute responsible for researching drug abuse, more than 70,000 people died in 2021 alone from an overdose of synthetic opioids – especially fentanyl. The fabrics often come from drug laboratories abroad to the United States. The opioid crisis with difficult drug addicts now shapes the street scene in American cities in some places.
Trump: “Fairness for everyone!”
Trump had promised the containment of the fentanyl crisis and border crime in the election campaign. On Monday, he wrote that as President, it was his task to ensure the security of all Americans. Trump’s conclusion: “I am satisfied with this first result.” In the next 30 days, it would have to be determined “whether a final economic deal can be found with Canada, or not,” he continued. The goal is: “Fairness for everyone!”
Trudeau apparently tries to appease Trump with a not entirely new proposal. His government had already presented a planned Canadian Dollar Dollar Dollar Dollar plan in December – according to the reading of Canadian media as a concession to the newly elected US president. The costs for the announced measures should only be a fraction of the expected economic damage, which mutual tariffs would have added to the two closely interwoven economies.
The White House had made a similar agreement with Mexico a few hours earlier. President Claudia Sheinbaum said that she had agreed with Trump that Mexico would strengthen his northern border with 10,000 soldiers of the National Guard to prevent Mexico’s drug smuggling to the United States, “especially the trade in fentanyl”. The United States, on the other hand, would have undertaken to combat arms trade. Trump had already called for Mexico’s tougher action against migration and the drug cartels in the election campaign.
The agreements on Monday showed that Trump – probably also in the face of falling stock exchange courses and the risk of increasing consumer prices in the United States – is open to discussions despite aggressive rhetoric. This could also serve as a blueprint for the European Union, which Trump also threatens punitive tariffs.
European politicians, including Federal Chancellor Olaf Scholz (SPD) and France President Emmanuel Macron, were resolved in Brussels. As a strong economic area, you could react to customs policy with customs policies, warned Scholz. “We will and will do that.”
Trump’s customs plans affect the markets worldwide and caused sensitive rashes on the stock exchanges on Monday. One of the reasons is that European carmakers and suppliers provide the important US market in part through their works in Mexico.
Negotiations during the suspension of tariffs
Now Canada and Mexico want to achieve more comprehensive agreements on security and trade questions with Trump so that the threats are finally off the table. The Republican said that the negotiations would take place under the direction of the Foreign, Minister of Commerce and Finance as well as Mexico’s high-ranking representatives. “I look forward to participating in these negotiations together with President Sheinbaum and trying to reach an agreement between our two countries,” said Trump.
dpa
Source: Stern
