Donald Trump has already declared his belief that “tariff” is one of the most beautiful words in the English language. But over the past 48 hours, the rest of the world couldn’t care less if they never hear it again.
By Monday night, the no-holds-barred trade war between the US and its bordering countries, Canada in the north and Mexico in the south, was off – or at least postponed. In the White House, press secretary Karoline Leavitt confirmed the good news with the line: “Canada is bending the knee, just like Mexico.”
Two phone calls between president Trump and the respective leaders of the US’s unhappy trade partners bought time, and a promise to meet the US demands for heightened border security.
But whether this represented a victory for president Trump or whether he backed down in the face of wildly fluctuating Monday stock markets and the imminent threat of domestic inflation brought about by retaliatory tariff measures is a matter of perspective.
China retaliates against US tariffs and shows it can turn trade war to its advantage
Donald Trump remains besotted with tariffs and Europe is next
China counters with tariffs on US products after levies take effect
Trump’s tariffs could directly affect about one-third of all Irish goods exports, KPMG warns
[ US-Canada relations turn icy: ‘Without this subsidy, Canada ceases to exist’Opens in new window ]
Trump’s confirmation that a “friendly” call with Mexico’s prime minister Claudia Sheinbaum had resulted in her commitment to send 10,000 troops to the border “immediately” can be interpreted as a result.
“Well, how do you like them apples?” hooted JD Vance, the thus-far lesser spotted vice-president of the new administration, in an exultant media post.
But Sheinbaum’s presentation of events, in a Mexican press conference, puts a different gloss on it. The call was arranged for 8am. It lasted for 45 minutes and was convivial.
“Our approach has been based on protecting and respecting human rights. We also discussed our shared interest in reducing fentanyl trafficking between Mexico and the United States,” she said.
“At the end he asked how long we could put the tariffs on hold and I told him, let’s put them on hold permanently. He then asked: well how long? And I responded, let’s pause them for a month. And I am confident that within a month we will deliver results for both his people and Mexico.
“At the same time, I described the number of high power firearms illegally coming into Mexico from the US. These high-powered weapons empower criminal groups and give them power. We also asked the US to help prevent arms trafficking from their country into ours. He agreed.”
The guns part did not feature prominently in the US administration’s portrayal of the agreement. Canada, meanwhile, has vowed to up its border security game also, with prime minister Justin Trudeau confirming that they would implement a $1.3 billion border plan designed to reinforce border security and stop the flow of fentanyl. A “fentanyl tsar” will also be appointed by Canada.
It was clear that Canadians were gravely worried by the imminent trade confrontation and equally resolute in their decision to stand up to it, with lists of buy-Canadian goods detailed in their main news agencies, along with a general bewilderment at why the new president feels so antagonistic.
President Trump still found a few truculent words for Canada even after halting the tariffs, repeating the claim, absurd and insulting to all Canadians, that their country should become the 51st state.
“Just like the banner behind me: Canada is not for sale. And we will never agree to that,” said Ontario premier Doug Ford in an interview on Monday night.
“I think it is important that cooler heads prevail. We want a stronger Am-Can fortress and make sure we are more prosperous and safer and the two most vibrant nations in the world. The only people that win here is China. We need to work together. Ontario [is] the third largest trading partner alone. We never asked for this fight. We don’t want to fight.”
The question now is how badly Trump wants to fight. On Friday night, asked what Mexico and Canada could do to prevent the US tariffs from kicking in, he said “nothing.” But that was clearly not the case.
The agreements will be chalked down to another example of Trump’s unorthodox use of what might be described as the art of the deal. Equally, it can be interpreted as an instance when he didn’t follow through on a threat.
On Monday evening, the White House confirmed that president Trump will speak with China’s president, XI Jinping, later this week in a hugely significant conversation in which the two superpowers will seek to avert a broader trade war.
But it’s clear that Donald Trump remains besotted by the concept of the tariff and it is highly likely that with harmony, for the next month, secured at either border, he will cast his eye across the Atlantic at America’s other old friend, Europe. On Sunday evening, he had complained that the EU trading deal with the US is tantamount to an “atrocity”.
“It will definitely happen with the European Union; I can tell you that. Because they have really taken advantage of us ... you know, we have over a three hundred-billion-dollar deficit. They don’t take our cars. They don’t take our farm products. They take almost nothing. And we take everything from them – millions of cars, tremendous amounts of cars and food products. The European Union ... it’s an atrocity, what they have done. So obviously something is going to take place there.”
- Sign up for push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Listen to our Inside Politics podcast for the best political chat and analysis
