Trump Delays 25% Tariffs On Mexico For One Month

Washington DC: US President Donald Trump has decided to delay imposing 25 per cent tariffs on Mexico for one month following a "friendly conversation" with his Mexican counterpart. The conversation between the heads of the two countries led to the halting of the imposition of the tariffs. Earlier, Mexico had warned that such tariffs would have severe consequences, including the loss of 400,000 US jobs and higher prices for American consumers.

Mexican President Claudia Sheinbaum announced on Monday that the United States has agreed to suspend the implementation of President Donald Trump's tariffs on Mexican goods for one month. According to Sheinbaum, Mexico will immediately deploy 10,000 National Guard soldiers to its northern border to curb the flow of illicit drugs into the US, particularly focusing on fentanyl. 

In a post on social media, Sheinbaum stated, "We had a productive and respectful conversation with President Trump, reaffirming our commitment to strong bilateral ties and national sovereignty. As part of our agreements, Mexico will reinforce its northern border to combat drug trafficking." The Mexican President had previously stated that Mexico would retaliate with its own tariffs if the US were to impose them. However, with this delay, it seems that both countries are willing to negotiate and find a mutually beneficial solution.

In the meantime, the United States has pledged to intensify efforts to prevent the smuggling of high-powered firearms into Mexico, a long-standing issue fueling violence and organised crime in the country.

Trump also commented on the development, saying he's "looking forward" to the negotiations between the two countries. "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," Trump stated.

The tariff suspension comes after Trump signed an order imposing hefty new tariffs of 25 per cent on goods from Mexico and Canada and 10 per cent on imports from China, threatening to ignite a trade war that could disrupt over USD 2.1 trillion of annual trade. Trump argued that Americans may feel economic "pain" from his tariffs, but it would be "worth the price" to secure US interests.

In response to the US tariffs, Canada's Prime Minister Justin Trudeau announced that Ottawa will impose 25 per cent tariffs on USD 106.5 billion of US goods. Trudeau criticised Trump's move, saying Canada did not want this to happen but was prepared to face it.

Trump posted on social media that he spoke on Monday morning with Canadian Prime Minister Justin Trudeau and would “be speaking to him again at 3 PM.” Both Canada and Mexico had plans to levy their own tariffs in response to US actions, but Mexico is holding off for the moment.

Trump used his Monday social media post to repeat his complaints that Canada has been uncooperative, despite decades of friendship and partnerships that range from World War II to the response to the 9/11 terrorist attacks on the United States. “Canada doesn't even allow US Banks to open or do business there,” Trump posted. 

He added, “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 US from drugs pouring through the Borders of Mexico and Canada.” 

Financial markets, businesses and consumers are trying to prepare for the possibility of the new tariffs. Stock market indices opened with a modest selloff, suggesting some hope that the import taxes that could push up inflation and disrupt global trade and growth would be short-lived.