The U.S. and Mexico reached an agreement Monday to delay a 25% tariff on all Mexican imports for one month, after Mexico agreed to ramp up security at its border — averting, at least for now, a move that could have driven up prices for U.S. consumers and stalled both countries’ economies.
Mexican President Claudia Sheinbaum posted on social media that Mexico will immediately reinforce the northern border with 10,000 members of the its National Guard to address drug trafficking from Mexico into the U.S., particularly fentanyl.
President Donald Trump said in his own post on social media that the U.S. will continue negotiations with Mexico over border security, headed by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.
Trump wrote: “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.
“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. I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a “deal” between our two Countries.”
The move came after Trump signed an executive order Saturday to place a 25% tariff on nearly all goods coming into the U.S. from Canada and Mexico starting on Tuesday. Trump also placed a 10% tariff on all Chinese imports and took steps to close a loophole that allows Chinese e-commerce companies like Temu and Shein to avoid tariffs by shipping packages worth less than $800 into the U.S. duty free.
The move triggered retaliatory tariffs from Canada, and Mexico had threatened to do the same. China said it will challenge the tariffs at the World Trade Organization and take unspecified “countermeasures” in response.
Stocks fell Monday morning in response to the tariff announcement over the weekend, but recovered some of those losses following the agreement with Mexico.
