Donald Trump has agreed to suspend his aggressive tariff hike against Mexico by one month after speaking to his counterpart Claudia Sheinbaum, who in return has agreed to dispatch 10,000 additional troops to the border between their two countries in order to police illegal drug trafficking.
Writing on Truth Social, the American said he had had a “very friendly” conversation with Sheinbaum and that the soldiers “will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country”.
Trump said he will also be having further talks on Monday with Canadian Prime Minister Justin Trudeau, after Canada, like Mexico, announced retaliatory tariffs against the U.S. in response to the new administration’s trade aggression.
U.S. stock markets were down on Monday morning as traders reacted to the prospect of a developing trade war between the U.S., Canada and Mexico.
The S&P 500, Nasdaq and Dow Jones Industrial Average all were down more than one percent upon opening and expected to fall throughout the day.
Key Points
- Donald Trump agrees to suspend Mexico tariff hike after agreeing border troop deal
- Elon Musk says ‘criminal organization’ USAID is beyond repair and will be shut down
- Trump cuts South Africa funding over land ‘confiscations’
- President claims UK ‘out of line’ as he threatens to expand tariffs to Europe
Breaking: Mexico says US agrees to pause tariff hike for one month
15:40
,
Joe Sommerlad
Here’s the latest from Mexico President Claudia Sheinbaum:
“We had a good conversation with President Trump with great respect for our relationship and sovereignty; we reached a series of agreements:
“1. Mexico will immediately reinforce the northern border with 10,000 members of the National Guard to prevent drug trafficking from Mexico to the United States, particularly fentanyl.
“2. The United States is committed to working to prevent the trafficking of high-powered weapons to Mexico.
Sostuvimos una buena conversación con el presidente Trump con mucho respeto a nuestra relación y la soberanía; llegamos a una serie de acuerdos:
— Claudia Sheinbaum Pardo (@Claudiashein) February 3, 2025
1.México reforzará la frontera norte con 10 mil elementos de la Guardia Nacional de forma inmediata, para evitar el tráfico de drogas…
Watch: Anti-Trump protesters block LA freeway for hours in response to president’s illegal immigration crackdown
15:31
,
Joe Sommerlad
Demonstrations like this could become a much more common spectacle on America’ streets as the president’s mass deportation raids ramp up.
Trump reveals upcoming call with Trudeau
15:15
,
Joe Sommerlad
The president says he is in discussions with Canada’s prime minister about the trade war he has caused to erupt between the two North American neighbors.
Canada doesn’t even allow U.S. Banks to open or do business there. What’s that all about? Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the U.S. from drugs pouring through the Borders of Mexico and Canada. Just spoke to Justin…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) February 3, 2025
Tracking the Nasdaq after Trump tariffs
15:00
,
Ariana Baio
WHO chief asks countries to push Washington to reconsider its withdrawal
14:40
,
Joe Sommerlad
Director-General Tedros Adhanom Ghebreyesus has asked global leaders to lean on Washington to reverse Donald Trump’s decision to withdraw from the U.N. health agency, insisting in a closed-door meeting with diplomats last week that the U.S. will miss out on critical information about global disease outbreaks.
U.S. stock market down upon opening
14:39
,
Ariana Baio
As expected, the U.S. stock markets opened on Monday morning to falling rates after President Donald Trump imposed sweeping tariffs on the U.S.’s largest trading partners: Canada and Mexico.
At opening, the Nasdaq was down more than 1.7 percent.
The S&P 500 was down 1.5 percent.
The Dow Jones Industrial Complex was down 1.08 percent.
Recap: Impatient Trump accuses Democrats of delaying his nominees
14:20
,
Joe Sommerlad
Donald Trump has accused Senate Democrats of deliberately delaying the confirmation of his nominees to top cabinet positions, angrily insisting, without evidence, that his political rivals are intentionally sabotaging his new administration and laughing about doing so behind the scenes.
Here’s more.
North Korea lashes out at Rubio for calling it a rogue state
14:00
,
Joe Sommerlad
Pyongyang isn’t too happy with “Little Marco” either.
Rubio issues Panama ultimatum over ‘Chinese influence’ on canal
13:40
Trump’s new secretary of state demanded Panama immediately reduce the “unacceptable” Chinese “influence and control” over the Panama Canal over the weekend as scores of people in the Central American nation marched in protest against his visit.
In his first official trip overseas as America’s top diplomat, Marco Rubio told Panama that the US would act “to protect its rights” under a longstanding mutual treaty.
He held talks with president Jose Raul Mulino, who said Panama’s sovereignty over the canal was not up for debate but suggested he would review agreements involving Chinese businesses.
Shweta Sharma reports.
Netanyahu visits Trump as uncertainty looms over Gaza ceasefire
13:20
,
Joe Sommerlad
Israeli prime minister Benjamin Netanyahu travelled to Washington DC yesterday for a meeting with Donald Trump, becoming the first foreign leader to look in on the new US president.
The visit came as uncertainty looms over the second phase of the Gaza ceasefire, which is supposed to begin on Monday.
Maroosha Muzaffar has more.
Musk dropped nearly $300m supporting Trump in 2024
13:00
,
Joe Sommerlad
The world’s richest man spent more than $290 million supporting Donald Trump and his MAGA allies on the campaign trail last year.
The staggering figure was revealed after Musk submitted new filings to the Federal Election Commission covering the last five weeks of 2024.
Katie Hawkinson takes a closer look.
Musk says ‘criminal organization’ USAID is beyond repair and $50bn agency will be shut down
12:40
,
Joe Sommerlad
Elon Musk has threatened to close the US Agency for International Development (USAID) after claiming the federal agency is “criminal” and “beyond repair”.
The billionaire tech mogul spoke out against the international development agency during a live session on X Spaces, early on Monday, discussing conversations he’d had with Donald Trump about enforcing a total shutdown of USAID.
“He [Trump] agreed we should shut it down,” Musk said during the live discussion.
“It became apparent that it’s not an apple with a worm it in. What we have is just a ball of worms. You’ve got to basically get rid of the whole thing. It’s beyond repair. We’re shutting it down.”
On X, he doubled down on the attack, branding USAID a “criminal organization”, without anything to back up the wild claim, adding: “Time for it to die.”
This is the latest development this morning:
NEW: USAID staff told headquarters will be closed today as Elon Musk declares he has Trump’s support to shut the agency down pic.twitter.com/u820I2HvX9
— John Hudson (@John_Hudson) February 3, 2025
Madeline Sherratt has more.
What are Trump's tariffs and who will be hit next?
12:20
,
Joe Sommerlad
Donald Trump has delivered on his pledge to introduce new trade tariffs on Canada, Mexico and China in a move that has caused panic for financial markets across the world.
The tariffs are set to come into force on Tuesday after the new US president signed a trio of executive orders.
He claimed the measures are designed to stop the flow of drugs and immigrants from the country’s two closest neighbours, Canada and Mexico.
Chinese goods will also see a new tariff placed on them, with Trump hinting more countries across the world could make the list in the near future.
White House officials have also indicated that the tariffs could grow larger for any country that retaliates, and the president has said tariffs will be coming to the EU “pretty soon”.
He has been more vague about whether the UK will be affected.
Albert Toth has this explainer.
Recap: Trump cuts off funding to South Africa over ‘land confiscation’
12:00
,
Joe Sommerlad
Here’s Maroosha Muzaffar with more on the president’s sudden rebuke to South Africa and threat to withdraw American financial support.
USAID officials on leave after protecting classified docs from DOGE
11:40
Two top security chiefs with the US Agency for International Development (USAID) have been placed on leave after they carried out their legal obligation to protect classified information from Elon Musk’s Department of Government Efficiency (DOGE), the Associated Press reports.
After DOGE’s government-inspection teams requested classified documents this week, USAID Director of Security John Voorhees and his deputy Brian McGill barred them from access because they didn’t have adequate security clearance.
Now, both men are on leave after carrying out their legal responsibility to protect classified information.
Musk’s staffers have since gained access to the materials, including intelligence reports.
Katie Hawkinson reports.
European markets set for heavy falls after Trump’s EU tariff warnings
11:20
,
Joe Sommerlad
Stock markets across Europe are expected to suffer hefty falls following big overnight declines in Asia after Donald Trump unveiled a raft of tariffs, sparking fears of a global trade war.
Experts are expecting stock indices to open sharply lower in Europe in volatile trading, with falls also forecast for Britain’s FTSE 100 Index, in response to warnings from Trump over tariffs on imports from the European Union.
Asian markets were the first to open since the weekend’s tariff announcements, with Japan’s Nikkei slumping 2.8 percent and the Hang Seng in Hong Kong 1 percent lower, although mainland Chinese markets remain shut for the Chinese Lunar New Year holiday until Wednesday.
Here’s more.
Trump risks ‘really damaging’ global economy with tariffs, Labour warns
11:00
,
Joe Sommerlad
Donald Trump risks having a “really damaging impact” on the global economy as he pursues tariffs against the US’s nearest neighbours, Yvette Cooper has warned.
Cooper, who was the first senior British government figure to respond to the announcement, said the UK wanted to break down trade barriers, not put them up.
Asked about Trump’s announcement, the home secretary told the BBC’s Sunday with Laura Kuenssberg: “Tariff increases right across the world can have a really damaging impact on global growth and trade, so I don’t think it’s what anybody wants to see.”
Archie Mitchell reports.
Trump claims UK ‘out of line’ as he threatens to expand tariffs to Europe
10:40
,
Joe Sommerlad
The looming prospect of a trade war with the US threatens to overshadow UK Prime Minister Sir Keir Starmer’s meeting with EU chiefs after Donald Trump claimed Britain is “out of line”.
In comments overnight, the US president suggested he is poised to expand his tariff regime to both the UK and the EU, but added that he thinks a deal can be done with Britain.
Asked by the BBC early on Monday if he will target the UK with tariffs, Trump said: “UK is out of line but I’m sure that one… I think that one can be worked out.”
Trump: Prime Minister Starmer has been very nice. We will see whether or not we can balance out our budget. With the European Union, it is a $350 billion deficit. Obviously, something will take place there. pic.twitter.com/IL9DJMHoU5
— Acyn (@Acyn) February 3, 2025
Trump also said discussions with Sir Keir have “been very nice”, adding: “We’ve had a couple of meetings. We’ve had numerous phone calls. We’re getting along very well.”
But the president said tariffs will “definitely” be placed on goods from the EU, saying America’s trade deficit with the bloc is “an atrocity” that means “they take almost nothing and we take everything from them”.
Canada to pull American alcohol from shelves as trade war escalates
10:15
,
Joe Sommerlad
The premier of Canada’s most populous province has ordered that American booze be taken from shelves in response to Trump’s latest tariffs.
The Liquor Control Board of Ontario (LCBO) controls all alcohol sales to restaurants, bars and stores in the province and now Doug Ford has ordered that they have to stop selling American products to outlets.
“Every year, LCBO sells nearly $1 billion worth of American wine, beer, spirits and seltzers. Not anymore. There’s never been a better time to choose an amazing Ontario-made or Canadian-made product,” Ford wrote in a statement.
The ban will begin on Tuesday.
Paul Farrell reports.
Trump attacks tariff critics, takes credit for California wildfire response and accuses Democrats of delaying nominees
09:50
,
Joe Sommerlad
Elsewhere on Truth Social, the president has been arguing that supporting his tariff wars is a matter of patriotism, suggesting the water is flowing in Los Angeles thanks to him and accusing his political opponents of deliberately holding up the approval of his cabinet nominees – and laughing about it.
“If George Washington and Abraham Lincoln were nominated for a position, the Democrats would take it out to the last moment before having to approve,” he huffs, brushing aside the possibility that Democratic senators might have very real concerns about the likes of Tulsi Gabbard and Robert F Kennedy Jr entering the corridors of power.
Anybody that’s against Tariffs, including the Fake News Wall Street Journal, and Hedge Funds, is only against them because these people or entities are controlled by China, or other foreign or domestic companies. Anybody that loves and believes in the United States of America is…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) February 2, 2025
The water is flowing in California. These once empty “halfpipes” are now brimming with beautiful, clean water, and heading to farmers throughout the State, and to Los Angeles. Too bad they refused to do this during my First Term - There would have been no fires! I want to thank… pic.twitter.com/QIHHu8NwJ4
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) February 2, 2025
Democrats are purposefully delaying virtually all of my Nominees. No matter how good and well qualified someone is, they are taking maximum time for approval — and laughing about it. They’re having a good time at the Country’s expense and safety. If George Washington and Abraham…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) February 2, 2025
Trump cuts South Africa funding over land ‘confiscations’
09:25
,
Joe Sommerlad
We’ll get back to the tariff drama in a moment but let’s take a look at Donald Trump’s social media offerings first.
The US president has unexpectedly announced he will be “cutting off all future funding to South Africa” until Elon Musk’s homeland investigates what Trump describes as the mass “confiscation” of land from its citizens.
The American appeared to be referring to a bill signed into law by Cyril Ramaphosa in January that allows land seizures without compensation in certain circumstances.
South Africa is confiscating land, and treating certain classes of people VERY BADLY. It is a bad situation that the Radical Left Media doesn’t want to so much as mention. A massive Human Rights VIOLATION, at a minimum, is happening for all to see. The United States won’t stand…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) February 2, 2025
Asked about the Truth Social post above by journalists at the White House yesterday, Trump said that South Africa’s “leadership is doing some terrible things, horrible things”.
He continued: “So that’s under investigation right now. We’ll make a determination, and until such time as we find out what South Africa is doing — they’re taking away land and confiscating land, and actually they’re doing things that are perhaps far worse than that.”
South Africa’s International Relations Minister Ronald Lamola responded on X that he hoped Trump’s advisers would use “this investigative period to deepen their understanding of South Africa's policies as a constitutional democracy”.
“Such insights will ensure a respectful and informed approach to our democratic commitments,” he added pointedly.
We trust that President Trump's advisors will leverage this investigative period to deepen their understanding of South Africa's policies as a constitutional democracy. Such insights will ensure a respectful and informed approach to our democratic commitments.
— Minister: International Relations and Cooperation (@RonaldLamola) February 3, 2025
The Biden administration allocated about $440m (£358m) in assistance to South Africa in 2023, according to the latest US government data.
Mexico and Canada hit back with counter tariff retaliation as Trump sparks new trade war
09:00
,
Joe Sommerlad
Good morning!
Mexico and Canada have both announced retaliatory tariffs against the US after Donald Trump signed an order imposing sweeping levies against both nations.
Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau announced their decisions over the weekend, initiating what is likely to be an economic standoff with America and its two largest trading partners.
Earlier, Trump signed an order imposing 25 percent tariffs on all goods from Canada and Mexico starting on Tuesday, with the exception of Canadian energy products, which will be subject to a 10 percent duty.
In response, Sheinbaum said she was instructing her Secretary of the Economy to implement a “Plan B,” which includes “tariff and non-tariff measures in defense of Mexico's interests”.
Hours later Trudeau announced that Canada would impose 25 percent tariffs on $106.5 billion of US goods in response to Trump’s tariffs.
Here’s the latest from Mike Bedigan.
ICYMI: Pardoned Jan. 6 rioter says he's 'so happy' and has ‘no regrets’ about sitting at ‘b****’ Nancy Pelosi’s desk
08:00
,
Katie Hawkinson
Pardoned January 6 rioter Richard Barnett has said that he has “no regrets” about sitting with his feet up at then-Speaker Nancy Pelosi’s desk during the attack on Congress in early 2021.
“Oh man, what a great time to be alive. You know, I’m so happy I could be a part of it,” Barnett said during an appearance on the rightwing broadcaster Newsmax. “I’ve had a lot of anger issues to work through. I mean, I’ve been through hell. But I’m telling you what, I wouldn’t give it back for anything.”
The host, Greg Kelly, told Barnett: “Now let me take a look at you at that desk, and by the way, this is one of the iconic images of January 6th, and some people are horrified by it.”
Read more:
ICYMI: Trump won't visit Washington DC plane crash site because it's 'the water': 'You want me to go swimming?’
07:00
,
Mike Bedigan
Donald Trump responded sarcastically to questions about whether he would be visiting the site of the deadly crash over the Potomac River in Washington D.C., asking reporters at the White House: “You want me to go swimming?”
The president said on Thursday he would be meeting with some of the families of victims of the tragedy, which occurred at Ronald Reagan Airport Wednesday night. All 67 people involved in the crash are presumed dead, authorities said previously.
When asked about his plans to visit the crash site, he replied: “I have a plan to visit, not the site. Because you tell me, what’s the site? The water? You want me to go swimming?”
Read more:
Why peace talks between Ukraine and Russia are not as simple as Trump makes out
06:00
,
Tom Watling
US president Donald Trump’s pre-election promises to end the war in Ukraine in less than 24 hours – and before his inauguration – have proved empty.
Keith Kellogg, Mr Trump’s special envoy for Ukraine and Russia, says the administration’s new goal is to stop the fighting in 100 days.
But details on how this will be achieved remain scant. Mr Trump has repeatedly claimed this is because speaking openly about his plans would undermine his negotiating position. His detractors, however, say this is a cover for a lack of plan.
Read more:
Did Donald Trump cancel Black History Month?
05:00
,
Katie Hawkinson
Amid President Donald Trump’s rollback of diversity, equity and inclusion programs throughout government and the Defense Department declaring “identity months dead,” concern grew this week that Black History Month could be in danger.
But White House Press Secretary Karoline Leavitt said Friday the President planned to sign a proclamation declaring February as Black History Month, as every president has done since 1976.
Trump followed through, issuing the proclamation on Saturday, February 1.
Here’s what we know about Black History Month under Trump, and what prompted concern about its fate:
Kanye West posts apology to Kamala Harris and praises Trump as he returns to social media
04:00
,
Greg Evans
Kanye West has apologised to Kamala Harris and praised Donald Trump as the rapper made a controversial return to social media.
The 47-year-old, who has legally changed his name to Ye, was reinstated on X/Twitter in 2023 after previously being banned for sharing antisemitic conspiracies.
In a series of seemingly unrelated posts, West claimed that he is a billionaire, praised Trump and made an apology to Kamala Harris, following an explicit comment about the former vice president in a since-deleted tweet.
Keep reading:
ICYMI: Trump administration slams Selena Gomez in new video after sobbing over deportations
03:00
,
Brittany Miller
The White House has responded to Selena Gomez’s Instagram video where she tearfully reacted to recent Immigration and Customs Enforcement raids across the country.
Read more:
What do Trump's executive orders say on tariffs and how would they work?
02:00
,
Josh Boak
With a trio of executive orders, President Donald Trump has almost instantly thrown the world economy and his own goal of cutting inflation into turmoil.
His tariffs against Canada and Mexico in order to stop illegal immigration and the illicit fentanyl trade led to retaliatory taxes by both countries on U.S. imports. He placed an additional 10% tariff on imports from China with the stated goal of stopping the production of fentanyl.
But on a deeper level, Trump suddenly hit the U.S. economy with tax increases that, if sustained, could total more than $1 trillion in 10 years. He did so without congressional approval and by his own acknowledgement at the perilous chance of “some pain” in the form of higher inflation, job losses and worse growth.
Continue reading:
Watch: Trudeau tells Canadians to forgo Florida orange juice and Kentucky bourbon after Trump's aggressive tariff
01:00
,
Katie Hawkinson
Trump risks ‘really damaging impact’ on global economy with tariffs, Cooper warns
00:00
,
Archie Mitchell
Donald Trump risks having a “really damaging impact” on the global economy as he pursues tariffs against the US’s nearest neighbours, Yvette Cooper has warned.
The US president has introduced a 25 per cent levy on goods coming from Mexico and Canada, and a 10 per cent trade tax on Chinese goods, which will come into effect on Tuesday.
The penalties have sparked fears of a global trade war that could fuel a fresh spike in the cost of living.
Read more:
Mark Carney blasts 'bully' Trump as he pledges Canadians are not 'pushovers'
Sunday 2 February 2025 23:00
,
Katie Hawkinson
