US President Donald Trump is reversing course on tariffs against Mexico, stepping back from a trade war he started with the nation’s neighbor.
Trump on Thursday postponed 25% tariffs on most goods from Mexico for a month amid widespread fears of the economic fallout from a broader trade war.
This move comes after talks he had with the Mexican President Claudia Sheinbaum. The agreement reached between the two parties to pause the tariffs on Mexican goods is valid until April 2.
“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” Trump wrote on the social media, Truth Social.
The pause is valid until April 2nd, he said.
On Truth Social, Trump writes that the agreement was made out of respect for the Mexican president.
“I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl. Thank you to President Sheinbaum for your hard work and cooperation!”
On Tuesday, tariffs of 25 percent came into effect on Mexican and Canadian goods.
With the new agreement between the United States and Mexico, tariffs on Mexican goods will be postponed.
It is the second time Trump has postponed tariffs since he first unveiled the import taxes in early February.
No details were released Thursday as to what led to the temporary pause of tariffs on Mexico.
That is second time President Sheinbaum has managed to defer the imposition of tariffs on Mexican goods through a last-minute phone call to Donald Trump.
Mexican President Claudia Sheinbaum has thanked Donald Trump for pausing tariffs, after they were imposed earlier this week.
“We had an excellent and respectful call in which we agreed that our work and collaboration has given unprecedented result,” she says in a post on X.
“We will continue to work together, especially around the issues of migration and security, which includes reducing the illegal crossing of fentanyl into the United States, as well as weapons into Mexico,” she adds.
Sheinbaum also confirms that the suspension will run until 2 April.
Trump’s 25% tariffs on Canada and 20% tariff on Chinese goods came into effect on Tuesday, and as it seems the tariffs for China at least came to stay. Now it remains open to see if Canada will have an exemption from tariffs as Mexico.
Earlier on Thursday, Donald Trump said he believes Canadian Prime Minister Justin Trudeau is using his country’s tariff dispute with the US to “run again for prime minister”.
“Believe it or not, despite the terrible job he’s done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister,” Trump said.
“So much fun to watch!” he added.
