US President Donald Trump has halted new tariffs on Mexico for one month after Mexico agreed to deploy 10,000 National Guard troops to its northern border to curb illegal drug trafficking, particularly fentanyl, he said on Monday.
The agreement also includes a US commitment to prevent the smuggling of high-powered weapons into Mexico, Mexican President Claudia Sheinbaum announced on X. The two leaders spoke by phone on Monday, just hours before the tariffs on Mexico, China, and Canada were set to take effect.
Trump said the temporary suspension would allow both countries to continue negotiations.
“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” he wrote on Truth Social.
Sheinbaum, speaking at a press conference, said, “We have this month to work and convince each other that this is the best way forward.”
The announcement eased concerns on Wall Street, where US stocks had dropped sharply on Monday morning over fears of escalating trade tensions. The benchmark S&P 500, which had been down significantly, trimmed its losses to 0.7% by 10:45 a.m. ET (1545 GMT). Mexico’s peso also gained some relief following the decision.
Meanwhile, Trump said he had spoken with Canadian Prime Minister Justin Trudeau on Monday and planned to speak with him again at 3 p.m. ET (2000 GMT). However, tariffs on Canada and China remain set to take effect on Tuesday, with Canada already announcing retaliatory measures.
A senior Canadian official, quoted by a New York Times reporter on X, expressed doubt that Canada would receive a similar delay.
Speaking in Washington after returning from Mar-a-Lago, Trump suggested that the European Union could be next in line for tariffs, criticising its trade policies.
“They don’t take our cars, they don’t take our farm products. They take almost nothing and we take everything from them,” he told reporters.
At an informal summit in Brussels on Monday, EU leaders warned they would retaliate if the US imposed tariffs but urged dialogue. French President Emmanuel Macron said the EU must “make itself respected and thus react” if its trade interests were threatened. German Chancellor Olaf Scholz noted that while the EU could respond with tariffs of its own, negotiations would be preferable.
Trump hinted that Britain, which left the EU in 2020, might avoid US tariffs, stating, “I think that one can be worked out.”
Faridah Abdulkadiri
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