WASHINGTON — President Donald Trump decided on Monday to delay his tariff threats against Mexico for an additional month, following an agreement with Mexican President Claudia Sheinbaum. This agreement includes the deployment of 10,000 members of Mexico’s national guard to the U.S. border, aimed at curbing drug trafficking issues.
While the tariffs aimed at Canada and China are still set to take effect on Tuesday, there remains significant uncertainty regarding the longevity of these deals. There is speculation about whether these tariffs could trigger a larger trade conflict, as Trump has indicated his intention to impose further import taxes in the future.
A senior official from Canada expressed doubt about the possibility of escaping the impending tariffs, unlike Mexico. The official suggested that the U.S. administration’s adjustments in demands towards Canada appear to be more frequent compared to those directed at Mexico. They requested anonymity, as they were not authorized to speak publicly regarding these negotiations.
When asked about what Canada could offer to avoid tariffs, Trump remarked, “I don’t know,” during a press meeting in the Oval Office on Monday afternoon.
The leaders of the U.S. and Mexico announced the delay in tariffs after Trump referred to their earlier conversation on social media as a “very friendly conversation.” Trump expressed anticipation for the upcoming discussions, stating that negotiators would include Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick along with high-ranking Mexican officials.
President Sheinbaum has outlined conditions for the negotiations, including adjustments to border policies. Trump confirmed the mobilization of Mexican troops to the border, with Sheinbaum posting on X, “Mexico will reinforce the northern border with 10,000 members of the National Guard immediately, to stop drug trafficking from Mexico to the United States, especially fentanyl. The United States commits to work to stop the trafficking of high-powered weapons to Mexico.”
Earlier, Trump noted he had spoken with Canadian Prime Minister Justin Trudeau and would touch base with him again later in the day. While plans for both Canada and Mexico to impose their own tariffs in retaliation for U.S. actions were in place, Mexico is currently refraining from such actions.
In his social media commentary, Trump reiterated his frustrations regarding Canada’s perceived lack of cooperation, despite a long history of friendship that extends back to World War II and through to the response to the September 11 attacks. He stated, “Canada doesn’t even allow U.S. Banks to open or do business there. What’s that all about? Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the U.S. from drugs pouring through the Borders of Mexico and Canada.”
In the financial sector, businesses and consumers are bracing for the potential impact of new tariffs. Stock markets experienced a slight decline, reflecting some hope that the anticipated import taxes, which could lead to increased inflation and disrupt global trade, might not be permanent.
This atmosphere of uncertainty stems from a Republican president who has often praised tariffs, even implying that the U.S. government made an error by prioritizing income taxes over tariffs in 1913. On Sunday, Trump asserted that tariffs could be lifted if Canada and Mexico took stronger actions to combat illegal immigration and fentanyl trafficking, although specific criteria for these measures have not been established. Trump also suggested that a trade imbalance with these two major partners is unacceptable.
Currently, Mexico is facing a proposed tariff of 25%, while Canada would see a 25% charge on imports to the U.S. and a 10% tariff on energy products. China is subjected to a 10% additional tariff attributed to its connection with fentanyl production and distribution, according to the White House.
Kevin Hassett, the director of the White House National Economic Council, clarified that it is misleading to label the situation as a trade war despite the potential for retaliation and escalation. He emphasized, “Read the executive order where President Trump was absolutely, 100% clear that this is not a trade war. This is a drug war.”
Even though the focus may be on illegal drugs, Trump’s comments often reflect his broader concerns regarding trade surpluses with foreign nations. He also indicated that tariffs may soon be imposed on countries within the European Union. Trump views tariffs as a diplomatic means to address national security concerns, a method for revenue generation, and a strategy for renegotiating existing trade agreements.
Economists outside the administration have warned that tariffs could lead to increased prices and slow economic growth, with Trump himself acknowledging potential short-term difficulties, although he had campaigned on the promise of alleviating inflation.
