Trump to pause Canada tariffs for at least 30 days as China levies set to take effect on Tuesday Donald Trump has pulled back from the brink of a trade war with Canada and Mexico, postponing sweeping new US tariffs on goods from its two closest economic partners by one month. It is the third time in two weeks the US president has delayed his threatened 25% tariffs on the two countries. China is still set to face additional 10% levy on its exports to the US from Tuesday. Following talks with the Canadian prime minister, Justin Trudeau, and the Mexican president, Claudia Sheinbaum, on Monday, Trump agreed at the last minute to hold off from imposing new duties on the two countries. The agreements came on a day of extreme volatility in global financial markets as rattled investors reacted to the prospect of a dramatically escalating dispute involving the world’s largest economies. The US president had upended US-Mexico ties over the weekend when he announced 25% tariffs and accused Sheinbaum’s administration of engaging in an “intolerable alliance” with Mexican crime groups. Sheinbaum rejected that “slanderous” accusation, but on Monday morning struck a softer note as she announced “a series of agreements” with Trump after a conversation between the two leaders during which they agreed to pause US tariffs for a month to allow for fresh negotiations. For now, analysts believe the latest tariff measures against Chinese imports won’t bite too hard, AFP reports. “The 10 percent tariff is not a big shock to China’s economy,” Zhang Zhiwei at Pinpoint Asset Management said in a note. “It’s unlikely to change the market expectation on China’s macro outlook this year, which already factored in higher tariffs from the US,” he added. And that could allow China to keep its powder dry in the event Trump’s first wave of tariffs are the prelude to a bigger showdown. The US president has ordered an in-depth review of Chinese trade practices, the results of which are due by 1 April. That could serve as a “catalyst for more tariffs”, said Murphy Cruise, pushing Beijing to shift tactics. “This strategy of no retaliation may change if the US imposes additional significant tariffs later on,” UBS economists said. “In such a case, we think China may retaliate on a targeted basis and in a restrained manner, imposing tariffs on selected agricultural products, auto parts, energy,” they said. Experts added that China could also let the value of its currency devalue, increasing the competitiveness of its exports. Trump’s flagged talks with Beijing offer the two sides a chance to step back from the brink of a trade war that could hit hundreds of billions’ worth of goods. “China is looking to diffuse tensions,” Murphy Cruise said. “China’s economy is in a much weaker position this time around; it will be substantially harder to withstand a barrage of tariffs.” As the clock nears midnight in Washington DC, signalling the beginning of Trump’s tariffs on China’s imports, here is a look at how China might respond, via AFP: From retaliatory tariffs on US goods like car parts and soya beans to controls on raw minerals essential for American manufacturing – analysts say China has plenty of options if it wants to reply to fresh US levies. US President Donald Trump over the weekend announced 10% tariffs on Chinese products, upping the stakes in a trade confrontation between the global superpowers that started eight years ago in his first term. Beijing in response warned there were “no winners” in a trade war and vowed as yet unspecified countermeasures. News that Canada and Mexico had agreed a deal with Trump to delay 25% tariffs on their goods was followed by his announcement that he would be holding talks with China “probably in the next 24 hours” to try for an agreement. But, as the threat of new measures continues to hang over Beijing, eyes are on what officials there have lined up as a response. With its economy still struggling with sluggish consumption and slow growth, observers expect China to keep its powder dry for now – at least until another round of tariffs that could do greater damage. “We expect China not to jump to immediate retaliation following the 10 percent tariff hike, but will keep the doors of negotiation and cooperation open,” UBS bank analysts wrote in a note. “We do not expect China to follow the same strategy as in the first round of tariff hikes in 2018-19.” Bilateral trade totalled more than $530bn in 2024, according to US data, with exports of Chinese goods to the United States exceeding $400bn. That was second only to Mexico. But that yawning trade imbalance – $270.4bn in January-November last year – has long raised hackles in Washington. The White House has released US President Donald Trump’s schedule for tomorrow, when he will meet with Israeli prime minister Benjamin Netanyahu. They will hold two meetings, a press conference, and have a dinner together. Trump is also expected to sign more executive orders. Here is the schedule: 9:00 AM In-Town Pool Call Time 2:00 PM THE PRESIDENT signs Executive Orders Oval Office Closed Press 4:00 PM THE PRESIDENT greets the Prime Minister of the State of Israel Stake Out Location Open Press 4:05 PM THE PRESIDENT hosts a bilateral meeting with the Prime Minister of the State of Israel Oval Office In-House Pool 4:20 PM THE PRESIDENT participates in an expanded bilateral meeting with the Prime Minister of the State of Israel Cabinet Room Closed Press 5:10 PM THE PRESIDENT holds a press conference with the Prime Minister of the State of Israel East Room Pre-Credentialed Media Media Sign Up Here Media Link closes Tuesday, at 10am EST 5:40 PM THE PRESIDENT has dinner with the Prime Minister of the State of Israel State Dining Room Closed Press Why hasn’t the US created a sovereign wealth fund before, and why now? Sovereign wealth funds generally exist in countries that either have large foreign exchange reserves, such as China, or revenue from the sale of oil or other commodities, like Norway and Saudi Arabia. The US, however, has consistently run budget deficits in recent years. There are in fact some US states that do have smaller wealth funds, generally funded by commodities or land. The largest is the Alaska Permanent Fund, started in 1976, which currently manages about $82bn. But the size of the American private investment sector on Wall Street and beyond is such that various investment managers and private equity firms manage large pools of capital. That reduces both the need for and availability of capital for a sovereign wealth fund to exist, absent political will. Bessent said the US sovereign wealth fund would be set up in the next 12 months. While on the election campaign trail in September, Trump proposed setting up a fund which would finance “great national endeavours,” including infrastructure projects such as highways and airports, manufacturing and medical research. Trump also suggested, without providing specifics, that the fund could be used to keep TikTok operating in the US. TikTok is now operating due to an extension Trump granted prolonging the deadline for a forced sale or shutdown. New York Attorney General tells hospitals to keep offering gender-affirming care New York Attorney General Letitia James on Monday told hospitals that they would be violating state law if they stop offering gender-affirming care for people under age 19 in response to an executive order from President Donald Trump aimed at curtailing federal funding for such treatments, the Associated Press reports. In a letter, James, a Democrat, told health care facilities that refusing to provide the treatments would violate New York’s anti-discrimination laws. “Regardless of the availability of federal funding, we write to further remind you of your obligations to comply with New York State laws,” her letter reads. Trump, a Republican, last week signed an executive order that directed agencies to take steps to make sure that hospitals receiving federal research and education grants “end the chemical and surgical mutilation of children.” The language in the order – using words such as “maiming,” “sterilizing” and “mutilation” – contradicts what is typical for gender-affirming care in the United States. The letter from James came as some hospitals in Colorado, Virginia and Washington DC, said they were pausing gender-affirming treatments for young people while administrators evaluate the order. The White House on Monday released a statement that said the executive order was “already having its intended effect.” A spokesperson for the Greater New York Hospital Association said they were in close contact with member hospitals about the gender-affirming care executive order. “We are collaboratively working through every aspect of the EO to determine its legal and clinical implications. That work is ongoing,” Brian Conway said in an email. Gender-affirming medical care for transgender youth is not common but such treatments have been the subject of fierce political debate. Fewer than 1 in 1,000 adolescents in the US with commercial insurance received puberty blockers or hormones during a recent five-year period, according to a new study. Rubio says El Salvador has offered to accept deportees as well as US criminals US secretary of state Marco Rubio says El Salvador’s president has offered to accept deportees from the US of any nationality as well as violent American criminals now imprisoned in the United States. President Nayib Bukele, “has agreed to the most unprecedented, extraordinary, extraordinary migratory agreement anywhere in the world,” Rubio said. “He’s also offered to do the same for dangerous criminals currently in custody and serving their sentence in the United States even though they’re US citizens or legal residents.” Bukele said in a post on X that he had offered the US “the opportunity to outsource part of its prison system”. “We are willing to take in only convicted criminals (including convicted U.S. citizens) into our mega-prison... in exchange for a fee,” he wrote shortly after Rubio’s announcement, referring to El Salvador’s so-called terrorism confinement center. “The fee would be relatively low for the US but significant for us, making our entire prison system sustainable.” Bukele is seen by the Trump administration as a key ally in its migration efforts in the region. The Salvadoran president has launched an unflinching security crackdown in his country, arresting more than 80,000 people, and bringing the number of homicides down sharply. His policies are credited by Washington with reducing the number of Salvadorans seeking to enter the US illegally. Since taking office on 20 January, President Donald Trump has stepped up the number of migrants the US deports to Latin America, including using military planes for repatriation flights. The Trump administration on Monday removed protection against deportation from hundreds of thousands of Venezuelans in the US. California’s Democratic-dominated assembly endorsed up to $50m in funding Monday to defend the state’s progressive policies against challenges by the Trump administration. The legislation sets aside $25m for the state department of justice to fight legal battles against the federal government, and another $25m for legal groups to defend immigrants facing possible deportation. The proposals won approval on party-line votes after assembly Democrats delayed an expected vote last week. They now head to Democratic governor Gavin Newsom’s desk. “We do not trust President Donald Trump,” assembly speaker Robert Rivas said before the votes, describing the president’s administration as “out-of-control” and a threat to constitutional rights. Mexico had agreed to send 10,000 members of its national guard “to prevent drug trafficking from Mexico to the US, in particular of fentanyl”, Sheinbaum said. In return, the US had agreed to work to prevent high-powered weapons crossing the border into Mexico. Trump confirmed the deal shortly afterwards on his Truth Social network. He said 10,000 Mexican soldiers would be “specifically designated to stop the flow of fentanyl, and illegal migrants into our country”. Negotiations involving senior Mexican officials, the US secretary of state, Marco Rubio, the US treasury secretary, Scott Bessent, and the US commerce secretary, Howard Lutnick, would take place during the pause, he said. After two calls with Trump on Monday, Trudeau announced that tariffs would be “paused” for 30 days. “Canada is implementing our $1.3bn 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,” he said in a statement. “Nearly 10,000 frontline personnel are and will be working on protecting the border.” Trump to pause Canada tariffs for at least 30 days as China levies set to take effect on Tuesday Donald Trump has pulled back from the brink of a trade war with Canada and Mexico, postponing sweeping new US tariffs on goods from its two closest economic partners by one month. It is the third time in two weeks the US president has delayed his threatened 25% tariffs on the two countries. China is still set to face additional 10% levy on its exports to the US from Tuesday. Following talks with the Canadian prime minister, Justin Trudeau, and the Mexican president, Claudia Sheinbaum, on Monday, Trump agreed at the last minute to hold off from imposing new duties on the two countries. The agreements came on a day of extreme volatility in global financial markets as rattled investors reacted to the prospect of a dramatically escalating dispute involving the world’s largest economies. The US president had upended US-Mexico ties over the weekend when he announced 25% tariffs and accused Sheinbaum’s administration of engaging in an “intolerable alliance” with Mexican crime groups. Sheinbaum rejected that “slanderous” accusation, but on Monday morning struck a softer note as she announced “a series of agreements” with Trump after a conversation between the two leaders during which they agreed to pause US tariffs for a month to allow for fresh negotiations. What is USAid and why does Trump dislike it so much? Donald Trump’s administration has confirmed plans to merge the US international aid agency USAid into the state department in a major revamp that would shrink its workforce and align its spending with Trump’s priorities. The secretary of state, Marco Rubio, declared himself the acting administrator of the agency and employees have been locked out of its Washington DC headquarters, while others have been suspended. Trump has entrusted Elon Musk, the billionaire heading his drive to shrink the federal government, to oversee the project. On Sunday, Trump said USAid had “been run by a bunch of radical lunatics, and we’re getting them out”, while Musk called it “a criminal organization” without providing any evidence and said it was “time for it to die”. Opening summary Hello and welcome to the Guardian’s live US politics coverage. This is Helen Sullivan bringing you the latest. Donald Trump has pulled back from the brink of a trade war with Canada and Mexico, postponing sweeping new US tariffs on goods from its two closest economic partners by one month. It is the third time in two weeks the US president has delayed his threatened 25% tariffs on the two countries. China is still set to face additional 10% levy on its exports to the US from Tuesday. Meanwhile, confusion over the fate of USAid continues. Marco Rubio, US secretary of state, said he was taking over the agency and then named controversial figure Peter Marocco to be the deputy administrator. Here’s what else has happened today: Trump announced he’s planning to appoint Michael Ellis and the deputy director of the CIA. Ellis is a close Trump ally and worked in the president’s previous administration and helped fight allegations of collusion with Russia in the 2016 election. The Trump administration is opening new investigations into allegations of antisemitism at five US universities including Columbia and the University of California, Berkeley, the Education Department announced Monday. The US Senate on Monday confirmed Chris Wright, a fracking executive, to be Donald Trump’s energy secretary. The vote was 59-38. Wright, 60, the CEO of Liberty Energy since 2011 has said he will step down from the company once confirmed. He wrote in a Liberty report last year that he believes human-caused climate change is real, but that its hazards are “distant and uncertain”. He has also said that top-down governmental policies to curb it are destined to fail. The US interior department has unveiled a suite of orders aimed at carrying out Donald Trump’s agenda to maximise domestic energy and minerals production and slash red tape, Reuters reports. In a statement, the agency said interior secretary Doug Burgum, the former governor of North Dakota, signed six orders on his first day in office. US President Donald Trump has invited Indian prime minister Narendra Modi to visit the White House next week, a White House official said, hours after a US military plane departed to return deported migrants to the country. Senator Susan Collins, a republican from Maine, said she’ll vote to confirm Tulsi Gabbard as the director of national intelligence. Collins is a key swing vote and her support brings Gabbard’s nomination close to being sealed. Trump is reportedly mulling an executive order to dismantle the Department of Education, in alignment with mandates from Elon Musk’s “department of government efficiency” to slash federal agencies. Musk’s Doge reportedly accessed administration systems for the federal Small Business Administration. It has also reportedly accessed secure information at USAid and the Treasury department. According to Wired, Musk has reportedly deployed six young men to lead Doge’s efforts to access federal government data. The Trump administration made plain its intent to merge USAid with the state department under Musk’s supervision. Employees were barred from the agency headquarters today, after the website was shuttered over the weekend. Several democrats cried foul, calling the act illegal and denouncing Musk. The Trump administration may today begin using an obscure 18th-century law to deport undocumented migrants without first going through the courts. Darren Beattie, a former White House official who wrote, “Competent white men must be in charge if you want things to work,” is reportedly set for a top role at the state department.