Trump halts tariffs for one month as Mexico deploys 10,000 troops to fight drug trafficking

This deal comes shortly after Trump announced 25% tariffs on Mexico and Canada, along with a 10% tariff on China

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In a key development, Mexico's President Claudia Sheinbaum and US President Donald Trump have agreed to temporarily halt the sweeping US tariffs on Mexico’s exports, delaying their implementation for one month. The announcement came just hours before the tariffs were due to take effect, with both leaders confirming the agreement on social media platforms.

Sheinbaum, the first to reveal the decision, praised the "good conversation" with Trump, emphasizing mutual respect for both nations' sovereignty. As part of the agreement, Mexico will deploy 10,000 National Guard troops to its northern border to combat drug trafficking into the United States. In return, Sheinbaum highlighted that the US would work on reducing the trafficking of high-powered firearms into Mexico, which has fueled organized crime in the country.

Trump, in his post on Truth Social, characterized the conversation with Sheinbaum as "very friendly" and reiterated that the Mexican troops would focus on curbing the flow of fentanyl and illegal migrants into the US He did not mention any actions to prevent firearms trafficking to Mexico.

This deal temporarily diffuses one aspect of the escalating global trade tensions stirred by Trump's re-election bid, in which he campaigned on raising tariffs for international goods entering the US His plan included 25% tariffs on Mexico and Canada, arguing the tariffs were necessary to tackle undocumented migration and drug smuggling across Us borders.

Tariff Delays and Ongoing trade tensions

While this pause in tariffs addresses one front of the brewing trade war, it does not resolve the looming threat of 25% tariffs on Canada, which remains in effect. Trump also signaled ongoing discussions with Canadian Prime Minister Justin Trudeau, with China also facing 10% tariff increases.

Canada has been particularly vocal in its response, with Prime Minister Trudeau warning of retaliatory tariffs on $105bn worth of US imports. He cited the potential harm to both Canadian and American workers, especially targeting key products such as Florida oranges, Kentucky bourbon, and Pennsylvania-made motorcycles.

The intertwined economies of Mexico, Canada, and the US are highly vulnerable to the effects of a full-scale trade war, especially in industries like automotive and agriculture. Experts have warned that US consumers could bear the brunt of higher prices resulting from these tariffs.

Despite the risks, Trump has framed the tariffs as a necessary measure to "Make America Great Again", acknowledging the potential for domestic blowback.