After Mexico, Trump pauses Canada tariffs but China levies takes effect today

Donald Trump has backed down from the verge of a trade war with Canada and Mexico, delaying broad new US tariffs on products from its two closest economic allies by one month.

China remains in the firing line for Trump tariffs. It faces a further 10 percent duty on top of existing levies.

According to a notice posted online by US Customs and Border Protection on Monday and seen by Reuters, mailed items from China must go through official customs entry under new tariffs that go into effect on Tuesday.

Chinese goods eligible for temporary duty exemptions will be subject to 10% US duties, according to a notice published in the Federal Register.

CBP gave new advise to shippers on how to manage such shipments in light of the executive order on Chinese tariffs, as well as how to address the order with a manifest submitted before it goes into force.

“As we transition to execution of the Executive Order, it is extremely important that the trade maintain awareness of the shipments they are responsible for and are aware of the messaging that they are receiving from CBP,” it said.

President Donald Trump delayed the start of tariffs on Mexico and Canada for a month Monday after the US neighbors struck last-minute deals to tighten border measures against the flow of migrants and the drug fentanyl.

Global stock markets had slumped as Trump’s threat of sweeping 25 percent levies on exports from Canada and Mexico to the United States sparked fears of a global trade war.

But after calls with Trump just hours before the US tariffs were due to take effect, both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum struck deals for a postponement.

Trump said that after “very friendly” talks with Sheinbaum he’d “immediately pause” the tariffs on Mexico, and that his counterpart had agreed to send 10,000 troops to the US-Mexico frontier.

Tensions appeared higher between the US and Canada, but afer two separate calls Trump later said he was “very pleased” and was announcing a 30-day halt in the tariffs.

“Canada has agreed to ensure we have a secure Northern Border, and to finally end the deadly scourge of drugs like Fentanyl that have been pouring into our Country,” he said.

Talks on final deals would continue with both countries, he added.

Trudeau said after the “good call” that Canada deploy nearly 10,000 frontline officers to help secure the border, list drug cartels as terrorists, appoint a “Fentanyl Czar” and crack down on money laundering.