President Donald Trump has temporarily halted new tariffs on Mexico after the country agreed to strengthen its northern border with 10,000 National Guard troops to stop illegal drugs, especially fentanyl, from crossing into the United States.
Mexican President Claudia Sheinbaum added that the U.S. also promised to help prevent high-powered weapons from being smuggled into Mexico. According to a post by Trump on Truth Social, the two leaders spoke by phone on Monday, just hours before tariffs on Mexico, China, and Canada were about to begin.
Trump said both countries will use this month-long pause to continue negotiating. “I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two countries,” he wrote on his social media platform.
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Sheinbaum echoed this sentiment, saying, “We have this month to work and convince each other that this is the best way forward.”
The stock market responded positively to the news. U.S. stocks, which had dropped sharply earlier, began to recover. The S&P 500 was down about 0.7% by report time, cutting its losses in half. Mexico’s currency also stabilised after the announcement.
Trump mentioned he had spoken with Canadian Prime Minister Justin Trudeau and would talk again later. However, tariffs on Canada and China are still set to take effect on Tuesday, with Canada already announcing its own retaliatory taxes.
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