President Trump announced a one month pause on US tariffs targeting Mexico after Mexican President Claudia Sheinbaum agreed to send 10,000 troops to the border. Trump shared on Truth Social that the pause will allow for negotiations led by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, along with other representatives from Mexico. He also had mentioned having a "very friendly conversation" with Sheinbaum.
Sheinbaum detailed the agreement on X (Formerly Twitter), stating that the US is committed to preventing the trafficking of high-powered weapons to Mexico and that both countries will work on their security and trade policies. She announced that Mexico would immediately reinforce the northern border with 10,000 National Guards to prevent drug trafficking. The main target is fentanyl which travels from Mexico to the US. This move follows Trump's signing of an order of a 25% tariff on imports from Mexico and Canada, along with a smaller levy on goods from China. This has caused U.S. markets to tumble amid fear of rising consumer goods prices, international relationships, and stifled trade.
Before the pause, Kevin Hassett, director of the White House's National Economic Council, mentioned positive conversations over the weekend. Hassett anticipated further discussions between the leaders of the involved countries. Trump also spoke with Canadian Prime Minister Justin Trudeau and have come to an agreement on a temporary halt of tariffs. Canada will start working with the US on extended border security and illegal drug enforcement. The pause on tariffs will aim to facilitate negotiations and address the concerns raised by the modified trade agreements. While these negotiations occur, its looking quite good for the industry as there will likely be an agreement that avoids tariff usage.
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