Trump delays Mexico tariffs one month
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The news: US President Donald Trump paused new tariffs on Mexico for one month after its southern neighbour agreed to deploy 10,000 National Guard troops at the border to curb drug trafficking, particularly fentanyl.
Following a phone call between Trump and Mexican President Claudia Sheinbaum, the leaders announced the agreement in social media posts.
Sheinbaum said the deal reached during the phone call also includes a US commitment to act against high-powered weapons trafficking into Mexico.
The delay allows time for further negotiations, headed by secretary of state Marco Rubio, treasury secretary Scott Bessent and commerce secretary Howard Lutnick, Trump said in a social media post.
The context: Trump also said he had spoken with Canadian Prime Minister Justin Trudeau and would do so again at 3 pm ET (7:00am AEDT).
Both Canada and Mexico had announced countermeasures after Trump on Friday said the US would impose sweeping 25% duties on most imported goods.
Global markets fell on Monday, with the S&P 500 falling as much as 1.93% in morning trading. It recovered sharply after the Mexican tariff pause was announced, trading only 0.48% lower in late morning.
Over the weekend, Trudeau said Canada would introduce matching 25% levies on American imports, while Mexico had yet to disclose the details of its response.
A senior Canadian government official told the New York Times he was not optimistic about the possibility of Canada reaching a similar reprieve from Trump, but that the situation was still in flux.
What they said: “I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States,” Trump said on his social media site.
“These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country. We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico. I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a “deal” between our two Countries.”
The sources: Donald Trump post, Claudia Sheinbaum post, The New York Times
