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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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Elon Musk says he’s created his own political party – the ‘America Party’

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Elon Musk says he's created his own political party - the 'America Party'

Elon Musk says he has created a new political party – the America Party –
after asking his followers if he should do so in an online poll.

It follows his public falling out with Republican President Donald Trump.

On Friday, the billionaire had asked his followers on X whether a new US political party should be created.

On Saturday evening he wrote on the same platform: “By a factor of 2 to 1, you want a new political party and you shall have it!

“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy.

“Today, the America Party is formed to give you back your freedom.”

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Trump threatens to ‘put DOGE’ on Musk

The world’s richest man made the announcement just one day after President Trump signed a tax-cut and spending bill into law on Friday, which Musk had fiercely opposed.

More on Elon Musk

Musk had previously said we would form and fund a new political party to unseat lawmakers who supported the bill.

From bromance to bust-up

The Tesla boss backed Trump’s election campaign with more than a quarter of a billion dollars, later rewarded with a high profile role running the newly created department of government efficiency (DOGE).

But observers of the two men, both with huge wealth and reputations, wondered how long the bromance would last.

Elon Musk receives a golden key from U.S. President Donald Trump in the Oval Office.
Pic: Reuters
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Donald Trump gave Musk a warm send-off in the Oval Office in May. Pic: Reuters

In May Musk left the role, still on good terms with Trump but criticising key parts of his legislative agenda.

After that, the attacks ramped up, with Musk slamming the sweeping tax and spending bill as a “disgusting abomination” and Trump hitting back in a barbed tit-for-tat.

Trump earlier this week threatened to cut off the billion-dollar federal subsidies that flow to Musk’s companies, and said he would even consider deporting him.

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Is this the most powerful Trump’s been?

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Is this the most powerful Trump's been?

👉 Follow Trump100 on your podcast app 👈

Donald Trump’s ‘big, beautiful bill’ has passed and he’s due to sign it into law on Independence Day. Mark Stone and David Blevins discuss how the bill will supercharge his presidency, despite its critics.

They also chat Gaza and Ukraine, as Donald Trump meets with freed Israeli-American hostage Edan Alexander and talks to Vladimir Putin.

If you’ve got a question you’d like the Trump100 team to answer, you can email it to trump100@sky.uk.

You can also watch all episodes on our YouTube channel.

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At least 13 people confirmed dead and more than 20 missing from girls camp in Texas flooding

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At least 13 people confirmed dead and more than 20 missing from girls camp in Texas flooding

13 people have been killed in the US state of Texas after heavy rain caused flash flooding, according to local media reports.

Officials have also said more than 20 are missing from a girls’ camp in Texas.

As much as 10 inches (25 centimetres) of heavy rain fell in just a few hours overnight in central Kerr County, causing flash flooding of the Guadalupe River.

Judge Rob Kelly, the chief elected official in the county, confirmed fatalities from the flooding and dozens of water rescues so far.

A flood watch issued on Thursday afternoon estimated isolated amounts up to seven inches (17 centimetres) of rising water.

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