In a dramatic turn of events, US President Donald Trump has put his planned tariffs on Mexico on hold for a month after Mexican President Claudia Sheinbaum agreed to deploy 10,000 National Guard troops to curb drug trafficking at the border.
The move, announced after what Trump described as a “very friendly conversation” with Sheinbaum, comes as uncertainty grips global markets, with tariffs on Canada and China still set to take effect on Tuesday.
Trump confirmed that upcoming negotiations will be led by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and Commerce Secretary nominee Howard Lutnick, alongside top Mexican officials. Trump posted on social media.
“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries.”
As part of the agreement, Mexico will immediately station troops at its northern border to disrupt drug flows, particularly fentanyl, while the US has committed to working on halting the trafficking of high-powered weapons into Mexico. However, the last-minute pause has done little to ease concerns over a looming trade war.
Despite the temporary reprieve for Mexico, financial markets remained on edge. The stock market opened with a selloff before recovering slightly, reflecting ongoing uncertainty about the economic fallout of Trump’s aggressive trade policies. Critics argue that the tariffs will drive up prices and slow global growth, with Trump himself admitting that his measures could cause “some pain” for Americans.
Meanwhile Canada remains uncertain whether it can secure a similar delay, citing shifting demands from Washington. In response to Trump’s executive order, both Canada and Mexico had vowed retaliatory tariffs, but Mexico has opted to hold off for now.
Canadian Prime Minister Justin Trudeau has urged his country to prepare for countermeasures, warning that US consumers will bear the brunt of rising costs on essential goods like food, fuel, and cars.
Trump has invoked emergency powers under the International Emergency Economic Powers Act to justify the tariffs, framing them as a necessary measure to combat drug trafficking and illegal immigration. His administration claims that Mexico and Canada serve as major conduits for fentanyl and other narcotics entering the US.
As tensions mount, Trump remains steadfast in his approach. “This will be the golden age of America!” he declared on social media, dismissing concerns over economic instability.
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