The United States suspended import tariffs against Canada and Mexico for 30 days on Monday, prompting a partial recovery of losses posted on the New York Stock Exchange, NYSE, earlier in the day.
The suspension followed separate discussions between US President Donald Trump and his Canadian and Mexican counterparts, Justin Trudeau and Claudia Sheinbaum respectively.
Canadian Prime Minister Justin Trudeau announced the suspension of the 25% import tariff on Canadian goods following a call with President Donald Trump.
"I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl," the Canadian Prime Minister said on X. "Nearly 10,000 frontline personnel are and will be working on protecting the border."
"In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering," Prime Minister Trudeau added. "I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million."
After Trump's discussions with Mexican President Claudia Sheinbaum, it was also agreed that Mexico would deploy 10,000 soldiers along the U.S. border to combat drug trafficking.
Earlier in the day, the primary indices on the NYSE had recorded significant losses after the White House announced the new tariffs on imports from Canada, Mexico and also China, prompting all three countries to declare that they would implement retaliatory measures.
Trump had also warned of imminent tariffs on products from the European Union, raising the spectre of a feared trade war among economists.
After the postponement of the tariffs was announced, the indices managed to recover some of their earlier losses. Still, the mood on the New York trading floors remained negative.
The Dow Jones index closed 0.3% lower at 44,421.91 points. The broader S&P 500 index fell by 0.8% to 5,994.57 points, and the tech-heavy Nasdaq dropped by 1.2% to 19,391.96 points.
