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Both Canada and Mexico have agreed to strengthen border security with the United States in return for a 30-day pause in tariffs.

President Trump announced on Sunday he was imposing 25% taxes on goods from his country’s northern and southern neighbours.

Mexico was first to reach a deal with the White House. Its president, Claudia Sheinbaum, said she was sending 10,000 National Guard troops to the US border immediately in return for a tariff delay.

Mr Trump said the Mexican soldiers would be “specifically designated” to stop the flow of the synthetic opioid fentanyl into the US, as well as illegal migrants. Further negotiations will now be carried out, he added.

Ms Sheinbaum said she had a “good conversation” with him lasting at least 30 minutes just hours before the tariffs were due to begin.

She also extracted a concession from Mr Trump – after explaining the “seriousness” of high-powered weapons coming over the border from the US and getting into the hands of criminal groups.

“It gives them firepower,” she said. “We asked that the US also help our country by helping stop this arms trafficking… he agreed.”

Donald Trump as he hosted the 2024 Stanley Cup Champions, the Florida Panthers, at the White House. Pic: Reuters
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Donald Trump hosting the 2024 Stanley Cup Champions, the Florida Panthers, at the White House. Pic: Reuters

Canada made similar moves. Prime Minister Justin Trudeau said almost 10,000 frontline personnel “are and will be working on protecting the border”.

He added on X that his country was appointing a “fentanyl czar”, drugs cartels would be listed as terrorists, and there would be “24/7 eyes on the border”.

There will also be a Canada-US joint strike force to “combat organised crime, fentanyl and money laundering”, Mr Trudeau announced.

Both Trudeau and Trump will view the deal as a win – Trump for seemingly forcing the US’s northern neighbour to act, and Trudeau for heading off sanctions with measures that for the most part (with the exception of the fentanyl czar) had already been announced in December.

Donald Trump said he was “very pleased with this initial outcome” and work will begin see how a “Final Economic Deal” with Canada can be structured.

Analysis: Has it all just been theatre?

First Mexico, now Canada. In another whirlwind day, both of America’s closest neighbours appear to have capitulated to President Trump.
The 25% tariffs on all goods from both countries were due to come into effect at midnight US Eastern time. But after calls between all three leaders, suddenly the tariffs were paused.

So what’s going on? Is this a clear signal of the power Trump wields? His blunt tool of using the threat of tariffs as a negotiating tool has paid off? Bullying tactics work? Well, maybe. At least that’s how Mr Trump wants everyone to think. Dance to my tune, or else.

And it’s absolutely the case that Mexico and Canada were in panic mode this weekend. But surely Donald Trump was panicking a little too when he saw the stock markets on Monday. He claimed this afternoon not to be taking any notice of their sharp falls. But we know he cares deeply about market reactions.

Here’s what’s interesting: the statement from Canadian Prime Minister Justin Trudeau sounded at first glance like it was announcing something new.
“Canada is implementing our $1.3bn border plan… nearly 10,000 frontline personnel are and will be working on protecting the border…”

But it’s not a new announcement. Look at the language – “are and will be”. In other words, “we’re doing this already Mr President, but if you want me to reiterate it to placate you, then I will…” All that Justin Trudeau has done today is reiterate a border plan he announced last December.

Mexico too has been doing an increasing amount in the fight against fentanyl though it could and probably now will do more.

So has it all been theatre this past 24 hours?

A show of brinkmanship from Donald Trump, which could have had a cliff-edge ending, but instead ended with him looking strong (and freaking out much of the developed world in the process) and his closest neighbours forced to reiterate their existing plans.

Regarding China, a 10% tariff – in addition to those already in place – is still set to go ahead, though the White House said Mr Trump is due to talk to President Xi Jinping.

The US president has, however, said 10% could be just the start.

“China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher,” he said.

China has described fentanyl as America’s problem, and said it would challenge the tariffs at the World Trade Organisation, as well as taking other countermeasures.

But it also left the door open for talks.

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‘PM walking tightrope between Trump and EU’

What is the UK situation on tariffs?

President Trump hates trade deficits, and does not want to import more goods from another country than are sent there in return, says Sky’s economics and data editor, Ed Conway.

But Britain has bigger trade deficits than the US, Conway adds, and is one of the few countries in the world to import more goods from America than America imports from it.

Read more:
Trump threatens to cut off South Africa funding
Breaking economies could be just first step

In addition, because the UK is no longer part of the European Union, any tariffs imposed on Brussels will not affect London.

When asked about the UK, Mr Trump said: “I think that one can be worked out.”

Sir Keir Starmer said it was “early days”.

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Why Trump has threatened to cut off all future funding to South Africa

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Why Trump has threatened to cut off all future funding to South Africa

As the geographical spread of US President Donald Trump’s pronouncements increases, so do the furrowed worry lines of leaders worldwide. 

Day 14 of the Trump presidency brought threats of a global trade war and news of the likely demise of USAID – the US international aid and development agency.

But the 78-year-old also spent his time complaining that “South Africa is confiscating land” and “certain classes of People” were being treated “VERY BADLY” in a post on his Truth Social website.

He threatened to cut off all future funding to the country until a full investigation is carried out – so, what is actually going on?

Well, Mr Trump has decided to re-energise a far-right cause celebre which rests on the allegation that white people in South Africa are being marginalised – and subjected to “genocide” at the hands of the country’s black majority.

Examples of this alleged behaviour take various forms – including a bill recently signed into law by President Cyril Ramaphosa, which gives the government the power to expropriate land without financial compensation.

The law is designed to help redress the impact of decades of white minority rule in South Africa under the apartheid regime.

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Pic: Reuters
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Donald Trump has threatened to cut off funding to South Africa over a new law. Pic: Reuters

Three decades after Nelson Mandela led the country into the democratic era, white farmers still own the vast majority of farmland nationwide.

White landowners possess three-quarters of South Africa’s freehold farmland, compared with 4% for black landowners. Black people make up about 80% of South Africa’s total population while about 8% are white.

The new legislation limits land expropriation to circumstances where it is “just and equitable and in the public interest” to do so – for example, situations where the property is not being used – or attempts to reach a financial settlement with the owner have failed.

Read more:
USAID ‘shut down’ will erode influence in increasingly dangerous world
Breaking economies could be just the first step for expansionist Trump

File pic: Reuters
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Cyril Ramaphosa insisted “the South African government has not confiscated any land”. File pic: Reuters

In response to the president’s missive, Mr Ramaphosa mounted the following response: “The South African government has not confiscated any land.

“The recently adopted Expropriation Act is not a confiscation instrument, but a constitutionally mandated legal process that ensures public access to land in an equitable and just manner.”

The second part of the genocide claim is fuelled by the number of violent attacks on landowners in rural areas.

Right-wing groups in South Africa say white farmers are targeted because of their race while the authorities do little – or nothing – to protect them.

However, analysts say farm attacks reflect the country’s desperately high rates of violent crime.

One thing is certain – Mr Trump’s comments on South Africa land ownership reflect the influence that South Africa-born billionaire Elon Musk has on the US president.

Responding on X to Ramaphosa’s statement, Mr Musk said South Africa had “openly racist ownership laws,” suggesting white people are the victims.

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Donald Trump set to call Mexico and Canada over ‘trade war’ and warns ‘we can play the game all they want’

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Donald Trump set to call Mexico and Canada over 'trade war' and warns 'we can play the game all they want'

Donald Trump is set to speak to the leaders of Canada and Mexico later but warned them against retaliating to his tariffs, saying: “We can play the game all they want.”

The US leader has announced that he is imposing 25% tariffs on imports from Canada and Mexico.

The two countries then hit back with retaliatory tariffs.

However, the US president returned to Washington from Mar-a-Lago on Sunday night and brushed aside the reprisals.

“I love the people of Canada. I disagree with the leadership of Canada. And something’s gonna happen there.

“If they want to play the game, I don’t mind. We can play the game all they want.”

Mr Trump also threatened to impose steeper tariffs elsewhere, telling reporters import taxes will “definitely happen” with the European Union.

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When asked about potential tariffs on the UK, Mr Trump told reporters “we’ll see what happens”.

He said the UK “is out of line” on trade with US, but was confident the situation “can be worked out” without tariffs.

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Later on he posted on his Truth Social platform: “Anybody that’s against Tariffs, including the Fake News Wall Street Journal, and Hedge Funds, is only against them because these people or entities are controlled by China, or other foreign or domestic companies.

“Anybody that loves and believes in the United States of America is in favor of Tariffs. They should have never ended, in favor of the Income Tax System, in 1913. The response to Tariffs has been FANTASTIC!”

The Trump administration had said the tariffs are aimed at stopping the spread and manufacturing of the opioid fentanyl, as well as pressuring America’s neighbours to limit illegal immigration to the US.

But it risks a trade war and higher prices for American consumers.

Donald Trump speaks to reporters next to Air Force One after arriving back at Joint Base Andrews. Pic: AP Photo/Ben Curtis
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Donald Trump speaks to reporters next to Air Force One after arriving back at Joint Base Andrews. Pic: AP Photo/Ben Curtis

Shares on Asian markets tumbled in early trade on Monday and US equity futures pointed sharply lower in the wake of Mr Trump’s imposition of tariffs.

Japan’s Nikkei opened down 2% this morning, with large falls also reported on Taiwan and South Korea’s indices.

“Trump’s trade war has started,” said Alvin Tan, head of Asia currency strategy at RBC Capital Markets in Singapore.

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PM: ‘I want strong trade with US’

Read more:
Trump threatens Canada, saying it should become ‘cherished 51st state’

Why has Trump targeted Mexico and Canada?
How Donald Trump’s tariffs could impact consumers

Earlier on Sunday, Mr Trump said any potential pain caused by the trade war would be worth it.

“Will there be some pain? Yes, maybe (and maybe not!). It will all be worth the price that must be paid.”

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Trump tariffs: ‘You could be next’

Meanwhile, Canada’s high commissioner to the UK Ralph Goodale, speaking to Sky News’ Kamali Melbourne, had a warning for allies.

He said: “I would just say to our allies around the world watch this closely, you could be next, and in the meantime, stand by your friends.”

He added Mr Trump’s words were a “salesman’s pitch” and despite the historically close relationship between the countries “we don’t want to be each other”.

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Breaking economies could be just the first step for expansionist Trump

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Breaking economies could be just the first step for expansionist Trump

Donald Trump claims this tariff gut-punch at his three largest trading partners is just a matter of common sense.

They in turn are imploring him to see reason, with Mexico and China calling for dialogue and cooperation.

Follow live updates: Trump ignites trade war

Canada’s prime minister Justin Trudeau said on Saturday night – as he announced a reciprocal 25% tariff on $106bn worth of American goods – that the last time he had spoken directly with the US president was at Mar-a-Lago before the inauguration.

Much good that visit did him.

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Tariffs against Canada ‘will put US jobs at risk’

President Trump is defying the wisdom of decades that free trade encourages growth and prosperity in an interconnected global economy.

He is intent on rebalancing trade deficits, bringing manufacturing home and encouraging foreign investors to set up shop in the US.

His justification for tariffs is that they will force Mexico, China and Canada to halt the influx of fentanyl, its precursor chemicals and illegal migrants into the US.

Mexico is already working hard on both measures.

Now Mexico is in top spot
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Mexico is in top spot in terms of nations importing goods into the US

One of the few areas of diplomatic engagement with China over recent years has been the resumption of cooperation on counter-narcotics.

And as the Canadian prime minister said yesterday, only 1% of illegal fentanyl or illegal immigration crosses into the US via that northern border, and Canada is taking additional measures to reduce that further.

It is surely just a pretext.

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Sky’s Ed Conway explains Donald Trump’s plan for tariffs

Perhaps most alarming to any believer in the sovereignty of nations is the thought that President Trump really means it when he says “Canada should become our cherished 51st state“.

He does not seem to be relenting on his threats against Greenland, after a testy conversation with Denmark’s prime minister where he refused to back down on his demands on the territory.

Read more:
Why has Trump targeted Mexico and Canada?
How Donald Trump’s tariffs could impact consumers

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Why does Trump want Greenland?

His secretary of state, Marco Rubio, is currently in Panama – where Trump has threatened to take the Panama Canal by force.

Break Canada’s economy and this expansionist US president may believe he can bend their will.

Canada has more than just a trade war on its hands.

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