President Donald Trump and Mexican President Claudia Sheinbaum announced on Monday that their two countries have agreed to delay a 25% tariff on Mexican imports for one month. Both leaders said the Mexican government will send 10,000 National Guard members to the northern border to contain drug trafficking, specifically fentanyl, and limit illegal immigration into the United States.

This postponement comes after Trump signed an executive order Saturday imposing 25% tariffs on nearly all goods from Mexico and Canada and 10% on Chinese imports. "I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a 'deal' between our two Countries," Trump wrote on Truth Social, noting that Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick will lead the talks with Mexican officials.

Sheinbaum confirmed the agreement in a post on social platform X. "We had a good conversation with President Trump with great respect for our relationship and sovereignty; we reached a series of agreements," Sheinbaum said, adding that the United States "is committed to working to prevent the trafficking of high-powered weapons to Mexico." Later, she remarked, "I am sure that in this month we will be able to give results."

Trump's announcement over the weekend triggered immediate backlash from Canada and threatened a trade standoff with Mexico. Prime Minister Justin Trudeau called for 25% tariffs on $155 billion Canadian worth of U.S. products, starting with $30 billion in goods on Tuesday and more in about three weeks. "We pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? There is no reason," Trump posted on Truth Social, going on to say, "Harsh but true! Therefore, Canada should become our Cherished 51st State."

Administration officials insisted the measure is about curbing illegal narcotics and unauthorized border crossings. "This isn't a 'trade war' with Canada, or Mexico, or China - this is about fentanyl," said Interior Secretary Douglas Burgum on Fox News. "We've had a mass invasion of our country."

Trump's order also closed a loophole allowing certain Chinese e-commerce shipments valued under $800 to enter the U.S. duty-free. China's Ministry of Commerce responded it would challenge the action at the World Trade Organization and pursue "countermeasures," raising concerns of a prolonged global trade war.

Economists and business groups warned that further tariffs could raise consumer prices and disrupt supply chains between the U.S. and its top trading partners. Stocks reflected those fears on Monday, slumping early on but regaining ground after the White House confirmed a temporary reprieve with Mexico.

  • Key Data Points:
    • Tariffs: 25% on Mexico and Canada, 10% on China.
    • Canadian Tariffs: 25% on CA$155 billion of U.S. goods.
    • Mexican Troops: 10,000 deployed at the northern border.
    • Fentanyl Seizures: 21,900 lbs seized in 2024 at the southern border, just 43 lbs at the northern border.

Trump spoke with Trudeau on Monday, saying the two leaders would continue discussions in hopes of resolving the tariff feud. The White House has maintained that the border crisis constitutes a national emergency and is invoking powers under the International Emergency Economic Powers Act to justify imposing or lifting duties.

Sheinbaum stated she initially requested a complete cancellation of tariffs, but agreed to a monthlong pause after back-and-forth with Trump. "We had a good conversation...we reached a series of agreements," she said, noting her request for more stringent U.S. controls on guns moving south. "After some back and forth, she said she suggested a monthlong pause, to which Trump agreed."