WASHINGTON, USA — President Donald Trump announced Monday, February 3, 2025, that he has agreed to pause tariffs on Mexico for one month after what he described as a “very friendly” conversation with Mexican President Claudia Sheinbaum.
Trump said Sheinbaum agreed to deploy 10,000 Mexican soldiers to the U.S.-Mexico border to combat fentanyl trafficking and illegal migration, a condition he set for delaying the tariffs.
“I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States,” Trump wrote on Truth Social.
“These soldiers will be specifically designated to stop the flow of fentanyl and illegal migrants into our country,” he added.
Trump’s Tariff Plan Sparks Trade War Concerns
On Saturday, Trump signed executive orders imposing sweeping tariffs on Mexico, Canada, and China, scheduled to take effect Tuesday.
The measures included a 25% tariff on all Mexican imports; a 25% tariff on most Canadian imports, except energy products, which would face a 10% tariff; and a 10% tariff on Chinese goods.
The move triggered strong backlash from all three trading partners.
Canada and China immediately announced retaliatory measures, while Mexico engaged in negotiations that led to the temporary pause.
Despite the delay on Mexico’s tariffs, Trump said no country is exempt from trade penalties, leaving Canada and China’s tariffs on track to take effect after midnight Monday.
High-Level Negotiations to Follow
Trump said he looked forward to negotiations with Mexico and that Secretaries of State, Treasury, and Commerce would lead the talks.
“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 wrote.
Sheinbaum confirmed the talks, saying Mexico would work to secure its own territory while cooperating with the U.S. on border enforcement.
“For humanitarian reasons, we must help the United States address its fentanyl consumption crisis, which is leading to overdose deaths,” she said at a Monday morning press conference in Mexico City.
She also emphasized that the U.S. had, for the first time, agreed to work with Mexico to prevent high-powered weapons from entering Mexico, calling it a key part of the agreement.
Sheinbaum Rejects Trump’s Cartel Allegations
While negotiations moved forward, Sheinbaum pushed back against Trump’s claim that Mexico’s government has ties to cartels.
“There is no way we would come to an agreement under those circumstances,” she said.
Markets React as Trade Uncertainty Grows
Trump’s tariffs have rattled global markets, with the Dow falling nearly 600 points at the opening bell Monday before recovering slightly after the tariff pause announcement.
Sen. Chuck Grassley, R-Iowa, who had been lobbying Trump to exempt potash imports from tariffs due to their impact on U.S. farmers, welcomed the pause.
“Good news on Mexico tariff pause for 1 month,” Grassley posted on X.
“Hopefully negotiating will preempt more talk of tariffs.”
Canada Tariffs Still Moving Forward
While Mexico secured a reprieve, Trump’s call with Canadian Prime Minister Justin Trudeau on Monday morning did not result in a similar pause.
A follow-up call between the two leaders was scheduled for later in the day.
Republican Sen. Susan Collins of Maine, a frequent Trump critic, also warned against tariffs on Canada, calling it Maine’s most important trading partner.
“I am working with the Trump Administration to help its officials better understand the potential ramifications of certain tariffs on Maine,” Collins wrote on X, adding that she was seeking clarification on potential exemptions for northern border states and key industries like agriculture.
Economic Uncertainty and Inflation Concerns
Trump’s aggressive use of tariffs as a negotiating tool has raised concerns among economists, businesses, and lawmakers over potential price increases for American consumers.
Peter Navarro, senior White House trade adviser, defended the policy, calling it a “drug war” aimed at stopping fentanyl.
“This is a drug war, and it’s crucial that Canadian citizens understand that what we’re doing is trying to stop the killing of Americans by deadly drugs,” Navarro said Monday.
Economists warn that if the North American tariffs go into effect, they could trigger recessions in Canada and Mexico while raising U.S. prices on cars, gasoline, lumber, and other goods.
Brett Ryan, senior U.S. economist at Deutsche Bank, said businesses remain on edge.
“The president has used tariffs as a leverage tool,” Ryan told CNN. “Eventually, you’re going to have to implement them, or else your threats become meaningless.”
Boston Federal Reserve President Susan Collins also warned Monday that uncertainty surrounding trade policy was making it difficult for analysts to predict economic impacts.
“At the very least, the agreement injects further unpredictability into the U.S. economy,” she said.
For now, the tariff pause offers temporary relief, but with talks still underway and no permanent resolution in place, uncertainty remains for businesses, investors, and consumers.
