Mexico president Claudia Sheinbaum after a call with US president Donald Trump Monday, announced a pause in tariffs hike for a month, to allow the nations negotiate on a broader deal

President Sheinbaum said the North American neighbors had agreed a one-month pause on the imposition of a 25% across-the-board tariff by the US in exchange for concessions on border security by Mexico

Sheinbaum agreed to reinforce the US-Mexico border with 10,000 personnel from her country’s National Guard, to help crack down on fentanyl dissemination and illegal immigration into the US

In the call, US also agreed to ramp up efforts to prevent the trafficking of weapons into Mexico

Mexico’s President Claudia Sheinbaum announced the deal with the Trump Monday administration to suspend the 25% tariff on goods while Mexico will ramp up efforts to curtail illegal border crossings and drug trafficking at the US border including stationing 10,000 Mexican troops at the border

President Trump and Mexico President Claudia Sheinbaum announced Monday that they had agreed a one-month pause on the imposition of a 25% across-the-board tariff by the US in exchange for concessions on border security by Mexico while a broader deal gets negotiated. 
The latest trade war kicked off on Saturday, February 1, after President Trump signed executive orders imposing 25% taxes on most imports from Canada and Mexico, two of the country’s biggest trading partners. Courtesy of the same executive orders, goods from China are subject to 10% tax.
The targeted trading partners have reacted to the fresh trade war with US. Today’s phone call between the presidents of US and Mexico, calls for a moratorium as the countries enter into negotiations.
As part of the temporary pause, President Sheinbaum has agreed to reinforce the US-Mexico border with 10,000 personnel from her country’s National Guard, to help crack down on fentanyl dissemination and illegal immigration into the US, per statements from the two leaders. 
The US also agreed to ramp up efforts to prevent the trafficking of weapons into Mexico, according to Sheinbaum, who had a call with Trump earlier in the day Monday. 

Latest trade war kicked off on Saturday, February 1, after President Trump signed executive orders imposing 25% taxes on most imports from two of the country’s biggest trading partners – Canada and Mexico

The US also agreed to ramp up efforts to prevent the trafficking of weapons into Mexico, according to Sheinbaum, who had a call with Trump earlier in the day Monday. 
“I  just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation,” Trump said of the call.
“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.”
“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries.”
On Saturday, Trump ordered a 25% levy on Mexican imports after accusing the southern neighbor of failing to meet his demands of addressing the fentanyl and illegal immigration crises.
Trump had first issued the threat against Mexico last November, shortly after his 2024 victory. 
The tariff was set to come in addition to existing tariffs the US has in effect against Mexico, which had been preparing retaliatory measures. 

Heavy traffic, mostly in perishable consumables can be seen daily at the US-Mexico border in Laredo, Texas. About $775 billion worth of goods traded between the two countries 2024, based on data from the US Census Bureau. 

Migrants mass up at the wall demarcating US-Mexico border waiting to be processed by US border officials

Mexico is the largest US trading partner. Data from the US Census Bureau, about $775 billion worth of goods traded between the two countries last year. The added significance is that about 80% of Mexico’s exports flows north while just 16% of US exports go in the other direction towards Mexico.
“We had a good conversation with President Trump with great respect for our relationship and sovereignty; we reached a series of agreements,” Sheinbaum said in a statement on X, per a translation.
“Our teams will begin working today on two fronts: security and trade,” she added. “They are pausing tariffs for one month from now.”
Trump had also ordered a 25% tariff on Canada over the fentanyl and illegal immigration crises and a 10% across-the-board tariff on China.

A large chunk of US-Mexico is in the aggro-allied sector, including seasonal migration of farm worker across the borders. In Mexico workers [photo], sort avocados for export to US at a packing warehouse

Outgoing Canadian Prime Minister Justin Trudeau unveiled a suite of retaliatory tariffs, announcing Saturday night that Canada would respond to Trump’s decision to enact a fresh tariffs on Canadian exports to the United States by implementing a 25% tariff against $155 billion Canadian worth of U.S. goods, which would be about $106 billion U.S.
Trump and Trudeau held a call earlier in the day Monday, and agreed to a second call later in the afternoon to further hash out an arrangement.
Mexico, Canada and China are America’s three largest trading partners, accounting for about $1.4 trillion worth of US imports annually. For context, US gross domestic product clocked in at $27.36 trillion in 2023, according to the US Bureau of Economic Analysis.  

Canadian Prime Minister Justin Trudeau simultaneously unveiled a suite of retaliatory 25% tariffs on more than $106 billion in US goods

Trudeau said at a news conference emphasized the long history of the U.S.-Canada alliance and argued that “if President Trump wants to usher in a new ‘golden age’ for the United States, the better path is to partner with Canada, not to punish us,” in reference to the a new hard nosed economic focus that President Trump flagged off on January 20, declaring that the “golden age of America begins right now.”
The tariffs on US goods Canada’s PM said will include, “immediate tariffs on $30 billion worth of goods as of Tuesday,” the day the United States is set to begin collecting tariffs on Canadian goods.
The rest of the tariffs will come in about three weeks “to allow Canadian companies and supply chains to seek to find alternatives,” Trudeau said.
With Mexico, Canada and China combined accounting for more than 40% of total U.S. imports in 2024, the Tax Foundation estimates a reduction in GDP up to 0.4 percentage points, in the case of all three tariffs going into effect.
The drop could cost about 344,000 jobs amounting to tax increases of about $1.2 trillion between 2025 and 2034. The Foundation further projects a tax burden of $830 on the average US household, in the short term.