Mexico Melonak, Trump Delays Tariff Sanctions After Agreeing On Border Guard

Mexico-United States Border/UNSPLASH ILLUSTRATION/Greg Bulla

JAKARTA - United States President Donald Trump postponed a new tariff against Mexico for one month after Mexico agreed to strengthen its northern border with 10,000 members of the National Guard to stem the flow of illegal drugs, particularly fentanyl.

The agreement also includes US commitments to act to prevent high-power arms trade in Mexico, Mexican President Claudia Sheinbaum said on X.

The two leaders spoke by telephone on Monday, just hours before US rates against Mexico, China, and Canada were set.

Trump said the two countries would use a month-long suspension to carry out further negotiations.

"I look forward to participating in the negotiations, with President Sheinbaum, in our bid to reach an agreement between the two countries," he wrote in Truth Social.

US stocks, which fell sharply on Monday morning amid growing trade war concerns, eased losses following the announcement. The S&P 500 benchmark index fell 0.7% at around 10:45 a.m. ET (15.45 GMT), cutting its losses half today.

This surprising announcement also reduces pressure on Mexican pesos.

Trump said he had spoken to Canadian Prime Minister Justin Trudeau and would do it again at 15.00 local time.

Tariffs on Canada and China will take effect on Tuesday. Meanwhile, Canada announced a return rate in response to Trump's policy which is considered to sparked a trade war.

A senior Canadian official told New York Times reporter Ottawa was not optimistic that a similar suspension of punishment would soon occur.