Wednesday, February 5

Canada and Mexico avoid trade war kicking in at midnight

The day began with a trade war on the horizon.
US President Donald Trump had vowed to hit Canada and Mexico with 25% tariffs on imports as the clock ticked past midnight on Tuesday.
That is no longer the case, thanks to some last-minute phone calls.
The leaders of America’s two largest trading partners, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, both agreed to various measures aimed at boosting border security and cracking down on drug trafficking.
These deals led to Trump agreeing to 30-day pauses on his proposed tariffs.
At this stage, it’s just a pause. The threat of a trade war still looms.
And Trump’s 10% tariffs on China’s imported goods is still expected to go ahead at 00:01 EST (05:01 GMT).

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