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Trump Tariffs Put Pressure on Mexico and Canada

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Trump Tariffs Put Pressure on Mexico and Canada

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In early February 2025, President Donald Trump imposed a 25% tariff on imports from Mexico and Canada, with a 10% tariff on Canadian energy exports, citing concerns over illegal immigration and drug trafficking.

In response, both countries entered negotiations, resulting in a 30-day tariff pause agreement. Mexico agreed to deploy 10,000 National Guard troops to improve border security, and Canada pledged to strengthen enforcement efforts.

While the pause has eased tensions, initial tariff announcements caused economic instability, with the Mexican peso weakening and potential retaliatory measures from Canada. Economists worry about the long-term impact on U.S. inflation and trade relations.