Trade Cases
US shelves Mexico tariffs until next month
Written by Laura Miller
February 3, 2025
Mexican President Claudia Sheinbaum and US President Donald Trump reached an agreement to stave off blanket tariffs on Mexican goods for at least another month.
Trump had said via executive order on Saturday that 25% tariffs on Canada and Mexico and 10% on China would be implemented starting on Tuesday, Feb. 4. He justified the orders by accusing the countries of failing to stop drug trafficking, citing fentanyl in particular.
“We categorically reject the slander that the White House is making against the Mexican government of having alliances with criminal organizations,” Sheinbaum responded. “If such an alliance exists anywhere, it is in the armories of the United States that sell high-powered weapons to these criminal groups.”
She proposed a working group for the two sides to discuss the issues. “It is not by imposing tariffs that problems are resolved, but by talking and dialoguing,” she added.
Monday’s agreement
The two leaders conversed Monday morning and took to social media shortly thereafter to tout their deal.
Sheinbaum said Mexico agreed to send 10,000 members of its National Guard to the US-Mexico border to prevent drug trafficking. At the same time, the US committed to do its part to stop high-powered weapons trafficking.
“We had a good conversation with President Trump with great respect for our relationship and sovereignty,” Sheinbaum stated on X, formerly Twitter. “Our teams will begin working today on two fronts: security and trade.”
“It was a very friendly conversation,” Trump also said on social media, “We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico.”
He added that he looks forward to participating in the negotiations with Sheinbaum “as we attempt to achieve a “deal” between our two Countries.”
Laura Miller
Read more from Laura MillerLatest in Trade Cases
Price: Expect new trade shocks as Trump’s ‘reciprocal’ tariff negotiations continue
President Trump cast a wide net with the proposed, reciprocal tariffs. The negotiating stage will be critical to determining the success of his strategy. And for those suffering tariff whiplash, don’t expect the pace of change to slow down just because the reciprocal tariffs are entering a negotiating phase.
SMU Survey: Less support seen for Trump tariff policies
Meanwhile, an increasing number think it's too early to say whether the penalties are going to bring more manufacturing to the US.
CRU: USW seeks exclusion for Canada from Trump’s tariffs
The union is also urging stronger enforcement against countries such as China which break trade rules, and a coordinated Canada-US strategy to protect union jobs across the North America
Price on trade: A lot happened last week – and it wasn’t all about tariffs
Should foreign investment be allowed to reshape the American steel Industry? Not to be lost in the recent on-again-off-again tariff frenzy, Nippon Steel’s proposed takeover of U.S. Steel has also found itself in President Trump’s crosshairs when it comes to trade and industrial policy. Nippon Steel initially announced its nearly $15-billion bid for U.S. Steel […]
Trump signs executive order aimed at making US shipbuilding ‘great again’
President Trump on Wednesday signed an executive order meant to breathe new life into American shipbuilding and curb Chinese dominance in the sector.