U.S. and Mexico Pause Tariffs
Mexico will deploy 10,000 troops to its border while the U.S. pledges action against weapons smuggling; tariffs on Canada proceed as planned
In a last-minute agreement, the U.S. and Mexico reached a deal to pause the planned 25% tariffs on Mexican imports, initially set to take effect February 1. Mexican President Claudia Sheinbaum announced the agreement after a call with President Donald Trump, describing it as a temporary measure while both countries work to address security and trade concerns. The tariffs are suspended for one month. (Washington Post)
As part of the deal, Mexico committed to deploying 10,000 National Guard troops to its southern and northern borders to block the trafficking of drugs, particularly fentanyl, and reduce illegal immigration. In return, the U.S. pledged to take measures to curb the flow of weapons into Mexico, a key demand from Mexican officials. Trump emphasized that Mexico’s troop deployment would be specifically targeted at stopping fentanyl and illegal migrants. (Truth Social)
Economists had warned that the tariffs could have pushed Mexico into a recession, with the two countries sharing over $1.5 billion in daily trade. Mexican exports to the U.S. account for more than 80% of its total exports. Canadian officials noted, however, that the 25% tariffs on Canadian goods will still take effect as scheduled.
Prime Minister Justin Trudeau called the tariffs on Canada “unjustified” and hinted at retaliatory measures to protect Canadian trade interests. Meanwhile, experts remain skeptical about how much impact the Mexican troop deployment will have on stemming fentanyl trafficking due to the drug’s compact and hard-to-detect nature.
The agreement temporarily defuses a trade conflict but leaves open questions about the sustainability of the deal as both sides work toward long-term solutions.
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