MercoPress. South Atlantic News Agency

US tariffs on Mexico on hold after deal between Trump and Sheinbaum

Trump was to speak later Monday with Trudeau. Hence, a similar measure in the Canadian case was not to be ruled out

US President Doland Trump agreed Monday to put on hold for at least a month his decision to impose 25% tariffs on Mexican products after a conversation with his colleague Claudia Sheinbaum, during which new conditions were agreed upon.

“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 wrote on social media.

“These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country. We further agreed to 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 Besent, and Secretary of Commerce Howard Lutnick, and high level representatives of Mexico,” he added.

“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a 'deal' between our two Countries,” Trump also pointed out.

Sheinbaum also explained on X that “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 reinforce the northern border with 10,000 members of the National Guard immediately, 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.

3. Our teams will begin working today on two fronts: security and trade.

4. Tariffs will be paused for one month from now.”

The Mexican head of State also acknowledged that her country would deploy 10,000 National Guard troops “to prevent drug trafficking from Mexico to the United States, particularly fentanyl.”

“I'm sure in this month we're going to be able to deliver results,” she also pledged.

Regarding other tariffs on Canada and China, it was confirmed in Washington that there was no change regarding that part of President Trump's announcement during the weekend and therefore they are to become effective as of midnight Tuesday.

“Canada won't even allow US banks to open or do business there. How is that possible?” Trump wondered in Truth Social. “A lot of similar things, but also the drug war and hundreds of thousands of people killed in the US by drugs coming across the Mexican and Canadian borders,” he also wrote.

Trump's understanding with Sheinbaum resulted in stocks recovering from a slump early Monday.

While the details of Canada's retaliatory tariffs are yet to be announced, China's countermeasures are expected alongside a submission before the World Trade Organization (WTO).

It remains to be seen how far Trump intends to go with these restrictions, although the entire world is preparing for a trade war hitting particularly supply chains. In addition, US consumers face an imminent increase in retail prices and American companies placing parts of their production abroad should find a reduction in sales due to the countertariffs.

Trump spoke Monday morning with Canadian Prime Minister Justin Trudeau and would speak with him again later in the day. A move similar to that with Mexico was to be expected given Trump's comments that tariffs would not be applied if Canada and Mexico did more to tackle illegal immigration and fentanyl smuggling.

“Read the executive order where President Trump was absolutely, 100% clear that this is not a trade war,” White House National Economic Council Director Kevin Hassett stressed. “This is a drug war.”