U.S. Tariffs On Mexico Suspended For A Month – Trump

U.S. President Donald Trump has suspended tariffs on Mexico for one month after Mexico agreed to fortify its northern border with 10,000 National Guard members to tackle the flow of illegal drugs, particularly fentanyl, he said on Monday.

The agreement also includes a U.S. commitment to act to prevent trafficking of high-powered weapons to Mexico, Mexican President Claudia Sheinbaum said on X. The two leaders spoke by phone on Monday, just hours before U.S. tariffs on Mexico, China and Canada were set to take effect.

landmine clearance in war zones, and drugs to treat millions suffering from diseases are among the programs at risk of elimination.

The two countries will use the month-long suspension to engage in further negotiations, Trump said.

“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.

“We have this month to work and convince each other that this is the best way forward,” Sheinbaum said at a press conference.

An area chart showing Mexico’s annual share of U.S. avocado imports from 1995 to 2024.

U.S. stocks, which had dropped sharply on Monday morning on fears of a deepening trade war, pared their losses following the announcement. The benchmark S&P 500 was down 0.7% around 10:45 a.m. ET (1545 GMT), cutting its losses on the day in half.

The surprise announcement also relieved some of the pressure on Mexico’s peso.

Reuters/Ejiofor Ezeifeoma