Mexican President Claudia Sheinbaum announced on Monday that planned tariffs between Mexico and the United States have been put on hold for a month following a conversation with US President Donald Trump. The agreement comes after Sheinbaum pledged to bolster security along the US-Mexico border to curb drug trafficking.
“Our teams will start working today in two areas: security and commerce,” Sheinbaum stated in a post on X, confirming the temporary suspension of tariffs.
Trump had ordered 25% tariffs on all Mexican imports over the weekend, prompting Mexico to vow retaliatory measures, though it had not specified which products would be targeted.
As part of the deal, Mexico will deploy 10,000 National Guard troops to the border, focusing on preventing fentanyl and other drugs from entering the U.S. In return, the U.S. has committed to increasing efforts to halt the smuggling of high-powered firearms into Mexico.
The Mexican peso, which had initially fallen by over 1% against the U.S. dollar, rebounded after the announcement, reflecting market optimism over the temporary resolution.
While the tariff pause offers a brief respite, negotiations on long-term trade and security policies between the two nations remain ongoing.
Trump on Saturday imposed sweeping tariffs on imports from Mexico, Canada and China, citing the need to curb the flow of fentanyl and illegal immigration into the US. When asked what steps Canada and Mexico must take to have the 25% tariffs lifted, Trump emphasised the need for “balanced trade” and stronger border enforcement. “They have to stop people from pouring into our country and we have to stop fentanyl. And that includes China,” he told reporters.