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Donald Trump pauses Mexico tariffs for one month after agreement on security and trade

'We had a good conversation with Trump,' Mexico President said in a post on social media.
February 03, 2025 / 22:33 IST
Mexico's President Claudia Sheinbaum

The United States has agreed to delay the start of tariffs on Mexican goods for one month, presidents Claudia Sheinbaum and Donald Trump said Monday after holding talks. As part of a series of agreements between the neighbours, Mexico will reinforce security along its border with the United States to fight drug trafficking, Sheinbaum announced.

"We had a good conversation with President Trump with much respect for our relationship and sovereignty," Sheinbaum said on social media platform X. "Mexico will immediately reinforce the northern border with 10,000 National Guard troops to prevent drug trafficking from Mexico to the United States, particularly fentanyl," she said.

"The United States is committed to working to prevent the trafficking of high-powered weapons to Mexico," she added. Teams from the two countries would start working on Monday on the issues of security and trade, Sheinbaum said. "Tariffs are paused for one month from now," she added.

The two leaders spoke by phone on Monday, just hours before U.S. tariffs on Mexico, China and Canada were set to take effect.

In his Truth Social post, Donald Trump 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."

"These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our country."

Trump said the talks would be headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent and Secretary of Commerce Howard Lutnick and high-level representatives of Mexico.

"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," added Trump. "I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a “deal” between our two countries."

Mexican President Claudia Sheinbaum said the agreement also includes a U.S. commitment to act to prevent the trafficking of high-powered weapons to Mexico.

The pause added to the drama as Trump’s tariffs against Canada and China were still slated to go into effect Tuesday. Uncertainty remains about the durability of any deals and whether the tariffs are a harbinger of a broader trade war as Trump has promised more import taxes to come. The Mexican peso erased losses and is up 0.3% on her comments.

US Vice-President JD Vance also wrote on X, "For three days a lot of the far left has actively rooted against America and argued we’d get nothing out of President Trump’s demands that Mexico secure its country. "

*With Agency Inputs
Moneycontrol News
first published: Feb 3, 2025 09:25 pm

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