Mexico Caves U.S. tariffs on Mexico paused for a month after border deal, Trump says
WASHINGTON/BRUSSELS, Feb 3 (Reuters) – U.S. President Donald Trump has paused new tariffs on Mexico for one month after Mexico agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal drugs, particularly fentanyl, he said on Monday.
The agreement also includes a U.S. commitment to act to prevent trafficking of high-powered weapons to Mexico, Mexican President Claudia Sheinbaum said on X. The two leaders spoke by phone on Monday, just hours before U.S. tariffs on Mexico, China and Canada were set to take effect.
and te owner of the X social media platform, gave an update where he said the United States Agency for International Development or USAID was ‘beyond repair. The two countries will use the month-long suspension to engage in further negotiations, Trump said. “I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” he wrote on Truth Social. “”We have this month to work and convince each other that this is the best way forward,” Sheinbaum said at a press conference.
U.S. stocks, which had dropped sharply on Monday morning on fears of a deepening trade war, pared their losses following the announcement. The benchmark S&P 500 was down 0.7% around 10:45 a.m. ET (1545 GMT), cutting its losses on the day in half. The surprise announcement also relieved some of the pressure on Mexico’s peso.
Trump said on Monday he had spoken with Canadian Prime Minister Justin Trudeau and would do so again at 3 p.m. ET (2000 GMT). The tariffs on Canada and China remain poised to take effect on Tuesday, and Canada has announced retaliatory tariffs. A senior Canadian official told a New York Times reporter that Ottawa is not optimistic a similar reprieve is in the offing, the reporter said on X.
Speaking in Washington on Sunday after returning from his Mar-a-Lago estate, Trump indicated that the 27-nation European Union would be next in the firing line, but did not say when. “They don’t take our cars, they don’t take our farm products. They take almost nothing and we take everything from them,” he told reporters. EU leaders meeting at an informal summit in Brussels on Monday said Europe would be prepared to fight back if the U.S. imposes tariffs, but also called for reason and negotiation.
Arriving at the talks, French President Emmanuel Macron said if the EU were attacked in its commercial interests it would have to “make itself respected and thus react”.
Chancellor Olaf Scholz of Germany said the bloc could respond if necessary with its own tariffs against the U.S., but stressed it was better for the two to find agreement on trade. Trump hinted that Britain, which left the EU in 2020, might be spared tariffs, saying: “I think that one can be worked out”.
The U.S. is the EU’s largest trade and investment partner. According to the Eurostat data from 2023, the United States had a deficit of 155.8 billion euros ($161.6 billion) with the EU in the trade of goods, offset by a surplus of 104 billion euros in services. EU foreign policy chief Kaja Kallas said there were no winners in a trade war, and if one broke out between Europe and the United States, “then the one laughing on the side is China”.
NN: Hi, The Mexican President Claudia Sheinbaum is not as dumb as she looks. She scratched her ass and figured out she has a BIG problem here. What can I make Trump happy? I know we’ll put the army at the US border. And don’t let the wetbacks\cross the border. Mexico is very smart what are you going to do without America.
Canadians are the dumb shits of the hour. Canadian Prime Minister Justin Trudeau is drooling on himself…. hello wake up wake up this is basically a really simple proposition you want the biggest market in the world to shut you out? Canada has no real military. They’ve got no power, they’ve got no money. They’ve got significant economy. They are really the slaves to the US economy and they know it. Its simple give trump what he wants and life goes on. fight them and you end up with nothing.