Trump pauses tariffs on Mexico & has last-min call with Trudeau after sparking panic over price hikes on groceries & gas
Canada also reached a deal to delay the tariffs on Monday evening
THE United States tariffs against Mexico will be put on hold for one month, the country’s leaders announced hours before the 25% tax was scheduled to be implemented on Tuesday.
President Donald Trump‘s threats to impose a 25% tariff on and and a 10% tariff on China disrupted the global economy, sending stock markets into a tailspin.
Mexican, Canadian, and Chinese leaders scrambled to retaliate after Trump signed an executive order over the weekend that would allow the tariffs to take effect on Tuesday.
Canada responded by imposing a 25% tariff on more than $100 billion of US goods, while China vowed to sue the with the World Trade Organization.
On Monday, Mexican President Claudia Sheinbaum announced her administration and President Trump reached a series of agreements that would delay the tariffs on Mexico for a month.
Sheinbaum said at a news conference that she had a “long conversation” with Trump on the phone on Monday.
“We had a good conversation with President Trump with great respect for our relationship and sovereignty; we reached a series of agreements,” the Mexican president wrote on X.
Among the series of agreements includes Mexico’s immediate action to reinforce the northern border with 10,000 members of the country’s National Guard.
The bolstered National Guard presence will be tasked with preventing drug trafficking from Mexico to the United States, particularly fentanyl, Sheinbaum said.
The United States said it would commit to work to prevent the trafficking of high-powered weapons into Mexico, the Mexican president said.
“Our teams will begin working today on two fronts: security and trade,” Sheinbaum added.
Trump said he and his administration will work with Sheinbaum during the pause to “achieve a deal” between the two countries.
“I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States,” Trump said on Truth Social.
“These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrant into our Country.
“We further agreed to immediately pause the anticipated tariffs for a one month period during which 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.”
“Sovereignty is not negotiable,” President Sheinbaum said at the end of her daily press conference.
“An indisputable factor is the dignity of the people, of the nation and sovereignty.
“And within this framework, agreements are reached.”
TRADE WAR BREWING
Meanwhile, President Trump had two conversations with Canadian Prime Minister Justin Trudeau, hours before the US tariffs on Canada are set to go into effect.
The two leaders spoke on the phone early Monday – talks a senior Canadian government official told “were not optimistic.”
However, Trump told their follow-up conversation went “very well.”
But when asked if the tariffs against Canada will still go into effect on Tuesday, the president said, “Watch.”
The tariffs against Canada include a 25% tax on Canadian imports, though energy products, such as oil and natural gas, will only be subject to a 10% levy.
President Trump acknowledged that the tariffs would “bring some pain to the economy” but said it is the “price that must be paid.”
Trump said he also plans to speak with China perhaps over the next 24 hours.
The president warned that if the two countries can not strike a deal, China’s tariffs will “be substantial.”
EUROPEAN UNION ‘OUT OF LINE’
As a looming trade war brews, Trump also slammed the European Union and warned tariffs on goods from its 27 member states will
“definitely happen.”
“It might happen with that, but it will definitely happen with the European Union,” Trump told .
“I can tell you that, because they’ve really taken advantage of us, you know, we have an over $300 billion deficit.”
“They don’t take our cars, they don’t take our farm products.
“They take almost nothing, and we take everything: from the millions of cars, tremendous amounts of food and farm products.”
The president said the European Union and United Kingdom are both “out of line,” but was more sentiment that a deal could be worked out with the UK.
“So, the UK is way out of line, and we’ll see the UK, but European Union is really out of line,” Trump added.
“UK is out of line. But I’m sure that one can be worked out, Prime Minister Starmer has been very nice.”
Trump is considering imposing a 10% tariff on goods coming from the European Union, according to .
“Trump is testing the water with Canada and Mexico and what he can get away with,” a source told the outlet.
“They’re talking about doing it on all imports from the EU.”
