Washington DC February 3 2025: U.S. President Donald Trump will pause new tariffs on Mexico for one month after Mexico agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal drugs, particularly fentanyl, he said on Monday on social media.
Mexican President Claudia Sheinbaum said the agreement also includes a U.S. commitment to act to prevent trafficking of high-powered weapons to Mexico. The two leaders spoke by phone on Monday, just hours before U.S. tariffs on Mexico, China and Canada were set to take effect.
The two counties will use the month-long pause to engage in further negotiations, Trump said.
U.S. stocks and other global financial markets slumped on the looming tariffs, while world leaders responded to Trump’s threats to expand tariffs to the European Union as well.
The benchmark S&P 500 fell 1.7% at the opening bell, on the heels of the year’s biggest daily losses on a string of Asian and European bourses over fears of an economically damaging trade war.
