Trump Tariffs Live Updates: Mexico and Canada Secure Agreement, China Tariffs Set to Begin Tuesday

Mexico has begun deploying 10,000 troops to its northern border as part of an agreement with former US President Donald Trump. In exchange for this increased border security, Trump delayed a planned 25% tariff on Mexican exports.

President Claudia Sheinbaum confirmed that the deployment is already in progress. This arrangement came just a day after a last-minute deal was struck, aiming to address both trade issues and concerns over migration.

The additional military presence is expected to enhance security along the border, although the specific responsibilities of the troops are yet to be fully disclosed. The move underscores the ongoing efforts to manage the complex trade relationship between Mexico and the US, balancing both economic and security concerns.

The future of US financial assistance to struggling nations is now uncertain as former President Donald Trump pushes to integrate the US Agency for International Development (USAID) into the State Department. This restructuring could significantly alter the allocation of aid and shift priorities in global assistance efforts.

A 2022 Congressional Research Service report detailed how US foreign aid was previously distributed across key sectors:

1. 25% – Provided emergency humanitarian relief, including food supplies, medical aid, and temporary shelter for communities affected by wars, natural disasters, and humanitarian crises.
2. 21% – Focused on global healthcare initiatives, such as disease prevention, maternal and child health programs, and efforts to combat epidemics like HIV/AIDS and malaria.
3. 18% – Invested in economic growth and political stability, supporting infrastructure development, job creation, and governance reforms in recipient countries.
4. 18% – Directed toward security and law enforcement, including counterterrorism efforts, military training, and bolstering police forces in allied nations.
5. 18% – Allocated for education, governance, and social programs aimed at improving literacy rates, strengthening democratic institutions, and expanding access to essential public services.

With Trump’s proposed restructuring, these funding allocations may undergo significant changes, potentially reshaping America’s role in global development and diplomatic engagement.

New tariffs on imports from Canada, Mexico, and China, proposed by former US President Donald Trump, could lead to a sharp decline in global trade, according to a report by Germany’s Ifo Institute. The study suggests US exports would shrink by 22%, while Canada and Mexico—two of America’s biggest trade partners—would face even steeper losses.

Canada and Mexico Hit Hardest
The report highlights that if Canada and Mexico impose retaliatory tariffs, their exports could drop by 28% and 35%, respectively. This could significantly impact their economies, with Canada’s industrial output expected to decline by 14% and Mexico’s by 13%. Even without countermeasures, both nations would still see severe downturns, with Canada’s exports falling 17% and industrial production dropping 15%, while Mexico’s exports would decline by 21%, with a 10% hit to manufacturing.

China Less Affected
China, however, is in a stronger position to weather the impact. By shifting trade to other markets, China’s overall exports are projected to decline by just 3.8% if it responds with countermeasures, and 2.7% if it does not.

The findings indicate that Trump’s tariffs could have widespread economic consequences, disrupting global trade patterns and damaging key industries in North America.

Scotland’s whisky producers are worried that US tariffs could make a comeback as trade tensions between the US, Canada, China, and Mexico continue to escalate. The United States is the biggest market for Scotch whisky, with exports reaching €978 million ($1.22 billion) in 2023.

This isn’t the first time the industry has faced such a challenge. During Trump’s first term, US tariffs led to losses of around €600 million ($748 million) for Scotch whisky makers. Now, with Trump back in office, distillers fear they could be hit again, impacting their profits and global sales.

UK Finance Minister Rachel Reeves has vowed to push for an exemption, arguing that Scotch whisky should not be targeted. She highlighted Trump’s Scottish roots and the economic importance of the industry.

Trump has suggested that trade issues with the UK could be resolved, adding that he has a good relationship with Prime Minister Keir Starmer. However, until an official decision is made, Scotland’s whisky makers remain uncertain about what’s next.

China has introduced new export controls on five essential metals that play a major role in defense, technology, and clean energy industries. Here’s how these metals are used and why they are important:

1. Tungsten – One of the hardest metals, tungsten is widely used in military applications such as armor and ammunition. It is also an essential component in industrial cutting tools, construction machinery, and drilling equipment for oil and gas.
2. Indium – A critical material in modern electronics, indium is used in touchscreens, TV displays, and fiber-optic communication networks. The demand for this metal has surged due to the expansion of 5G technology.
3. Bismuth – This versatile metal is found in medical treatments, specialized alloys, and nuclear research. The U.S. has not produced refined bismuth since 1997 and depends almost entirely on imports.
4. Tellurium – Mostly derived as a byproduct of copper refining, tellurium is used in solar panels, semiconductor memory chips, and metallurgical processes. The U.S. relies on imported tellurium for manufacturing.
5. Molybdenum – This metal enhances the strength and durability of steel, making it resistant to heat and corrosion. It is also used in industrial lubricants, pigments, and oil refining processes.

With China limiting exports of these metals, industries that rely on them could face supply shortages and rising costs, potentially impacting global production and technological advancements.

Senate Minority Leader Chuck Schumer has spoken out against the Trump administration’s efforts to close USAID, arguing that it serves the interests of Russia and China rather than the United States.

Schumer took aim at the Department of Government Efficiency (DOGE), a nongovernmental panel founded by Trump, accusing it of undermining U.S. interests by pushing for the closure of the aid agency.

“This move is dangerous and harms America’s interests. Congress needs to step in and protect the rule of law,” Schumer wrote on X.

The shutdown efforts have already caused chaos within USAID, with many staff members placed on leave and hundreds of contractors facing layoffs due to stop-work orders from the administration. The situation has left the agency in turmoil and sparked fears about the future of U.S. foreign aid.