Following Mexican President Claudia Sheinbaum’s agreement to deploy 10,000 members of her nation’s national guard to the border to combat drug trafficking, President Donald Trump postponed his tariff threats against Mexico on Monday for a month of additional talks.
Trump has promised additional import levies in the future, so there was still concern about the sustainability of any agreements and whether the tariffs were a sign of a wider trade war. Trump’s tariffs against China and Canada were still scheduled to take effect on Tuesday.
Following what Trump characterized on social media as a very cordial discussion, the leaders of the United States and Mexico announced the halt, saying he was looking forward to the next round of negotiations.
Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and senior Mexican officials will lead the negotiations, according to Trump.
As we try to reach an agreement between our two nations, I’m excited to take part in those talks with President Sheinbaum, the president stated.
Sheinbaum outlined adjustments to border regulations as a precondition for the negotiations, and Trump affirmed Mexico’s army deployment.
Sheinbaum wrote on X that Mexico will immediately bolster the northern border with 10,000 National Guard personnel in order to prevent drug trafficking, especially fentanyl, from Mexico to the United States. The US pledges to take action to prevent the flow of powerful weapons to Mexico.
Trump said earlier on social media that he had a conversation with Canadian Prime Minister Justin Trudeau Monday morning and will have another conversation with him at 3 p.m. Although Mexico is currently delaying, both Canada and Mexico had intended to impose their own tariffs in retaliation for the U.S. measures.
Despite decades of friendship and collaborations that span from World War II to the reaction to the 9/11 terrorist attacks, Trump reiterated his grievances on social media that Canada has not cooperated.
Trump wrote, “Canada doesn’t even permit U.S. banks to open or do business there.” What is the purpose of that? There are many such things, but it’s also a drug war, and drugs crossing the Canadian and Mexican borders have killed hundreds of thousands of Americans.
Businesses, consumers, and financial markets are attempting to get ready for the potential additional tariffs. A slight selloff in the stock markets at the start of the day indicated that there was some optimism that the import levies, which have the potential to increase inflation and impede international trade and economy, would not last long.
However, the perspective revealed a great deal of skepticism regarding a Republican president who has spoken eloquently about tariffs and even claimed that the United States government erred in 1913 when it shifted to income taxes as its main source of funding.
Although there are no precise standards, Trump stated on Sunday that the tariffs would be lifted if Canada and Mexico took further action to combat fentanyl smuggling and illegal immigration. Additionally, Trump stated that the United States can no longer maintain a trade imbalance with its two biggest trading partners.
While Canada would pay 10% on its energy goods and 25% on its imports to the US, Mexico is subject to a 25% tax. According to the White House, China will be subject to an additional 10% duty because of its involvement in the production and distribution of fentanyl.
Despite the anticipated retaliations and potential for escalation, White House National Economic Council director Kevin Hassett stated Monday that it was inaccurate to refer to the conflict as a trade war.
According to Hassett, read the executive order in which President Trump made it very evident that this is not a trade war. It’s a drug battle.
Trump’s own comments, however, have frequently focused more on his apparent belief that other nations are taking advantage of the United States by running trade surpluses, even if the orders are centered on illegal drugs. Trump declared on Sunday that taxes on EU nations would soon be implemented. He has talked about tariffs as a means of renegotiating current trade agreements, raising money, and using them as a diplomatic tool on matters of national security.
Trump has stated that there will be some short-term pain following his campaign last year on the promise that he could control inflation, and several economists outside the administration have cautioned that the tariffs would raise costs and impede growth.
— Fabiola Sanchez and Josh Boak, The Associated Press
