The U.S. and Mexico have reached an agreement to delay a 25% tariff on all Mexican imports for one month, following Mexico’s commitment to enhance security at its border. Mexican President Claudia Sheinbaum announced that Mexico will deploy 10,000 National Guard members to address drug trafficking into the U.S. President Trump confirmed the agreement on social media and said negotiations on border security will continue.
The potential tariffs on Mexico were part of a series of trade measures by Trump, including placing tariffs on all goods from Canada and Mexico, as well as China. Stocks initially fell in response but later rebounded after the agreement with Mexico. Economists had warned that the tariffs could raise prices and slow economic growth in both countries.
The decision to delay the tariffs came after mixed messages from the administration, with officials citing concerns about fentanyl and immigration flows from Mexico, while Trump focused on trade deficits. The U.S. seized significantly more fentanyl at the southern border than the northern border. Trump also suggested that Canada should become the 51st state to avoid tariffs.
The agreement with Mexico will provide a one-month pause on the tariffs, allowing both countries to work towards addressing security concerns at the border. Mexico has also called on the U.S. to prevent the flow of high-powered guns into Mexico. The negotiations are ongoing, and both sides hope to reach a resolution within the agreed timeframe.
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