Mexican President Claudia Sheinbaum said she spoke with US President Donald Trump and reached an agreement to pause tariffs for a month starting Monday. Sheinbaum stated that both countries also reached agreements on security and trade, with Mexico reinforcing its border with 10,000 National Guard members. In return, the US has committed to working on preventing high-powered weapons from being trafficked into Mexico, Sheinbaum said, as per CNN.
Trump confirmed the conversation on his Truth Social platform, describing it as “very friendly” and stating that Sheinbaum had agreed to deploy 10,000 Mexican soldiers at the US-Mexico border. “These soldiers will be specifically designated to stop the flow of fentanyl and illegal migrants into our country,” he wrote.
Trump added that the two nations agreed to pause the anticipated tariffs for one month, during which negotiations would be led by US Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, along with high-level Mexican representatives. “I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two countries,” he added.
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Trump Speaks To Trudeau As US Trade War With Canada Escalates
Meanwhile, Trump also spoke with Canadian Prime Minister Justin Trudeau about the tariffs imposed on Canada. “Just spoke to Justin Trudeau. Will be speaking to him again at 3:00 P.M.,” Trump posted on Truth Social, while reiterating that the tariffs were part of a “drug war” aimed at stopping fentanyl from entering the US.
“Canada doesn’t even allow US banks to open or do business there. What’s that all about? Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the US from drugs pouring through the borders of Mexico and Canada,” he wrote.
Canada has announced retaliatory tariffs on US goods, further intensifying trade tensions. Trudeau introduced a sweeping 25% tariff on American products worth 155 billion Canadian dollars, covering beer, wine, household appliances, and sporting goods.
This move mirrors Trump’s 25% tariff on Canadian and Mexican imports, along with an additional 10% levy on Chinese goods, citing concerns over illegal immigration and drug trafficking.
Trudeau affirmed that he would “not back down in standing up for Canadians” but acknowledged the economic impact on both sides of the border. He also clarified that tariffs on $30 billion worth of US goods would take effect on Tuesday, with an additional $125 billion in 21 days to allow Canadian businesses time to adjust.
Ontario Bans US Firms from Bidding on Govt Contracts, Cancels Starlink Deal in Retaliation to US Tariffs
Ontario, Canada’s most populous province and economic hub, has barred US companies from bidding on government contracts worth tens of billions of dollars and scrapped a deal with Elon Musk’s Starlink in response to US tariffs.
“Ontario won’t do business with people hellbent on destroying our economy,” Ontario Premier Doug Ford posted on X, directly blaming the US administration for the move.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
“US-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame,” he added.
Ford announced that he was “ripping up” a 100 million Canadian dollar (US$68 million) contract with Starlink, signed in November, which aimed to provide internet services to 15,000 homes and businesses in remote northern Ontario.
Starlink satellites were set to begin providing connectivity in the region starting in June. Musk, the owner of Starlink and the world’s richest man, is known to be a close adviser to Trump.
The White House commented on the situation, stating on Monday that Mexico is “serious” about Trump’s executive order on tariffs but Canada has “misunderstood” it as a trade war between neighbouring countries. White House National Economic Council Director Kevin Hassett told CNBC that while Mexico has taken the US order seriously, “Canadians appear to have misunderstood the plain language of the executive order and they’re interpreting it as a trade war.”
Trump’s tariff measures, announced on Saturday, target goods from Mexico, Canada, and China, demanding stricter controls on fentanyl and illegal immigration into the US. The move has sparked fears of a trade war that could slow global economic growth and fuel inflation.
