U.S. President Donald Trump on Monday delayed his tariff decision against Mexico for a month after Mexican President Claudia Sheinbaum agreed to deploy 10,000 National Guard members to the U.S.-Mexico border to combat drug trafficking, international media reported.
Trump’s tariffs on Canada and China remained set to take effect Tuesday, despite warnings they could escalate into a broader trade war, the Associated Press reported. Trump had already pledged additional import taxes.
Trump and Sheinbaum reached an agreement after a “very friendly conversation,” according to AP. Trump said he looked forward to talks with Mexico, which would be led by U.S. officials, including Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick.
Sheinbaum confirmed Mexico would deploy troops to the northern border to curb drug trafficking, particularly fentanyl. Trump acknowledged the move, and both countries agreed to cooperate on stopping illegal weapons trafficking.
Trump also spoke with Canadian Prime Minister Justin Trudeau, noting that Mexico had delayed its tariffs, while Canada had threatened retaliation. He later criticized Canada on social media, accusing it of failing to cooperate and blocking U.S. banks from operating there.
Financial markets, businesses, and consumers braced for potential tariff impacts, with stock markets showing signs of concern.
Economists warned the tariffs could lead to higher prices and slower economic growth.
Trump acknowledged potential short-term pain despite pledging to reduce inflation, saying tariffs on Mexico and Canada could be lifted with stronger action against illegal immigration and fentanyl trafficking but without specifying conditions.
Mexico faces a 25% tariff, Canada 25% on imports and 10% on energy, and China 10% for its role in fentanyl production. Trump warned of additional tariffs on China if no deal is reached.