THE US tariffs against Mexico will be put on hold for a month hours before the 25% tax was scheduled to be implemented on Tuesday
President Donald Trump‘s threats to impose a 25% tariff on Mexico and Canada, and a 10% tariff on China disrupted the global economy, sending stock markets in a tailspin.
President Donald Trump speaks to the press upon arrival at Joint Base Andrews in Maryland on February 2Getty
GettyMexican President Claudia Sheinbaum speaks during a press conference at the National Palace in Mexico City on January 22[/caption]
Members of the Texas National Guard stand guard near the border wall between Mexico and the United StatesReuters
Leaders in the affected countries scrambled to retaliate after President Trump signed an executive order over the weekend that would allow the tariffs to take effect on Tuesday.
Canada responded by imposing a 25% tariff on more than $100 billion of US goods, while China vowed to file a lawsuit with the World Trade Organization against the United States.
On Monday, Mexican President Claudia Sheinbaum announced her administration and President Trump reached a series of agreements that would delay the tariffs on Mexico for a month.
Sheinbaum said at a news conference that she spoke on the phone with Trump on Monday, describing it as a “long conversation.”
“We had a good conversation with President Trump with great respect for our relationship and sovereignty; we reached a series of agreements,” the Mexican president wrote on X.
Among the series of agreements includes Mexico’s immediate action to reinforce the northern border with 10,000 members of the country’s National Guard.
The bolstered National Guard presence will be tasked with preventing drug trafficking from Mexico to the United States, particularly fentanyl, Sheinbaum said.
The United States said it would commit to work to prevent the trafficking of high-powered weapons into Mexico, the Mexican president said.
“Our teams will begin working today on two fronts: security and trade,” Sheinbaum added.
President Trump said he and his administration will be working with Sheinbaum during the pause to “achieve a deal” between both countries.
“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 Truth Social.
“These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrant 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.”
“Sovereignty is not negotiable,” President Sheinbaum said at the end of her daily press conference.
“An indisputable factor is the dignity of the people, of the nation and sovereignty.
“And within this framework, agreements are reached.”
TRADE WAR BREWING
Meanwhile, President Trump is scheduled to speak with Canadian Prime Minister Justin Trudeau again at 2 pm EST, hours before the US tariffs on Canada are set to go into effect.
The two leaders spoke on the phone on Monday morning – a conversation a senior Canadian government official told The New York Times “were not optimistic.”
The tariffs against Canada include a 25% tax on Canadian imports, though energy products, such as oil and natural gas, will only see a 10% levy.
President Trump acknowledged that the tariffs would “bring some pain to the economy,” but said it is the “price that must be paid.”
As a looming trade war brews, Trump also slammed the European Union and warned tariffs on goods from its 27 member states will
“definitely happen.”
“It might happen with that, but it will definitely happen with the European Union,” Trump told BBC.
“I can tell you that, because they’ve really taken advantage of I said, you know, we have over $300 billion deficit.”
President Trump expressed how the European Union does not take “America’s cars or farm products,” summarizing it as “taking almost nothing, while we take everything.”
“So, the UK is way out of line, and we’ll see the UK, but European Union is really out of line.
“UK is out of line. But I’m sure that one can be worked out, Prime Minister Starmer has been very nice.”
Texas National Guard participates in a training exercise to secure the border with Mexico Texas Department of Public Safety and US Border Patrol in Mission, TexasReuters
US Customs and Border Protection and a US Marine discussing the protective barrier along the southern border with Mexico near San Ysidro, CaliforniaPublic Domain
APCanadian Prime Minister Justin Trudeau addresses the media after President Trump signed an order to impose stiff tariffs on imports from Canada, Mexico, and China[/caption]