Trump is back with Canada and Mexico while another country challenges it

While threatening several countries to increase customs duties for weeks, Donald Trump has temporarily suspended this measure and has to face economic aftershocks.

Have Donald Trump’s threats have paid? Only a few days after having signed the decree allowing to increase the customs taxes of certain products imported from Canada and Mexico, which was to come into force this Monday, February 3, the tenant of the White House returned to his own decisions. The billionaire indicated to grant an additional period to the governments of the two neighboring countries as a concession reward he would have obtained from the Canadian Prime Minister and the Mexican President.

Justin Trudeau, head of the Canadian government, announced a break “for at least 30 days” of the increase in customs duties promised by the United States on February 3. A suspension made during a “constructive” telephone exchange with Donald Trump who relied on promises made to the American president and going in the direction of his policy: a strengthening of border protection against immigration and Fight against fentanyl, a drug that wreaked havoc in the United States.

The Canadian Prime Minister has thus promised the implementation of a “$ 1.3 billion border plan” to strengthen operations with “nearly 10,000 agents [qui] are and will be on the ground to protect our border. “Canada also said it made” new commitments “in accordance with the wishes of Donald Trump: the appointment of a” tsar responsible for the fentanyl question “, adding cartels Mexicans at the list of terrorist entities or even the monitoring of the border 24 hours a day and 7 days a week.

Donald Trump said he was “very satisfied” with Canada’s commitments and said the time for 30 days to “see if a final economic agreement with Canada can be concluded”. The tenant of the White House was also delighted with the guarantees obtained on the side of Mexico, to whom he also granted a respite in the increase in customs duties while we find a “agreement”. There too, Mexico promised in return to strengthen its northern border with the United States thanks to the mobilization of “10,000 members of the National Guard immediate, to avoid the drug trafficking from Mexico to the United States, In particular fentanyl “as Claudia Sheinbaum said. The agreement, for the time being, could be extended during the next negotiations envisaged by Donald Trump with his Mexican counterpart.

Threats that weaken Trump?

If Donald Trump boasts after the victories he seems to have obtained after having threatened Canada and Mexico with larger customs taxes, are the guarantees that have been promised to him so significant? In Canada, a billion euros plan for strengthening and protection of the border was already in the boxes, or even well advanced. As for the part of Fentanyl arriving in the United States from the North, it represents less than 1% of the drugs seized on the other side of the border. With Mexico, Donald Trump did not specify that the agreement in question provides for a commitment and additional efforts of the United States to “work to avoid trafficking in arms”.

Agreements ultimately less advantageous than Donald Trump wants to believe and which can serve the American president. It is a real flip-flop for the billionaire: the threats he had been uttered for weeks on the increase in taxes were about to succeed before finally falling into the water. This strategy is likely to weaken the next warnings from Donald Trump who, it is known, built many of his strategies on the fear he can inspire in his allies or his enemies.

A serious replica against Donald Trump

Another detail that is all its importance: threats to increase customs taxes if they are implemented may affect the United States and American citizens. Already, because the trade partners of the United States, such as Mexico which represents 83% of American exports, are likely to turn into part of American products. Then, because these same partners risk implementing similar measures capable of climbing prices for Americans, as decided to do China this Tuesday, February 4.

While Donald Trump has decided to increase customs taxes with China by 10%, Beijing has announced to impose customs duties of 15% on imports of American coal and natural gas (GNL) and 10% on American oil imports as well as other product categories according to the Chinese Ministry of Finance: agricultural machinery, vehicles, etc. The increase will come into force on February 10 said Beijing who also filed a complaint with the World Organization to trade to “defend its legitimate rights”. Beijing’s response and sanction against the United States does not stop there since China has announced to open an investigation against Google. She suspects the technology giant of breaking my anti-monopoly regulation in place in China.