Mexico, U.S. Reach Temporary Tariff Pause After Presidential Talks

TDT | Manama

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Mexican President Claudia Sheinbaum announced on Monday that the implementation of tariffs with the United States has been put on hold for a month following a discussion with U.S. President Donald Trump. The decision comes as Mexico commits to strengthening security measures at the U.S. border to curb the flow of illicit drugs.

"Our teams will start working today in two areas: security and commerce," Sheinbaum stated in a post on social media platform X, confirming the temporary suspension of tariffs.

Trump had recently ordered a 25% tariff on all Mexican goods, prompting Mexico to vow retaliatory measures, though details on the specific products to be targeted were not disclosed. However, Monday’s agreement appears to have eased tensions, at least temporarily.

As part of the accord, Sheinbaum confirmed that Mexico will deploy 10,000 National Guard troops to the U.S. border to stem the trafficking of drugs, particularly fentanyl, into the United States.

In return, the U.S. has pledged to take stronger action against the smuggling of high-powered weapons into Mexico, a longstanding concern for Mexican authorities battling cartel violence.

Following the announcement, the Mexican peso, which had been down by over 1% against the dollar, rebounded and moved into positive territory, signaling market optimism over the de-escalation of trade tensions.

The agreement marks a critical moment in U.S.-Mexico relations, with both nations seeking to balance trade and security concerns while averting a full-scale tariff war.