The US is to pause its plan to issue tariffs on all imports from Mexico after talks between the country’s presidents today (3 February).
President Trump and his Mexican counterpart Claudia Sheinbaum confirmed an agreement had been reached that halts the introduction of the planned 25% tariff, which had been due to be introduced tomorrow.
In a statement on Truth Social, Trump said Sheinbaum had agreed to install 10,000 soldiers on the border between the two countries.
“These soldiers will be specifically designated to stop the flow of fentanyl and illegal migrants into our country,” Trump’s post read.
In a statement on X, Sheinbaum confirmed she would use 10,000 members of Mexico’s National Guard “to prevent drug trafficking from Mexico to the United States, particularly fentanyl”.
She added: “The United States is committed to working to prevent the trafficking of high-powered weapons to Mexico. Our teams will begin working today on two fronts: security and trade.”
Trump’s post on Truth Social made no mention of an agreement on weapons.
He confirmed the countries would hold talks during the one-month pause and added: “I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two countries.”
According to data on the US Department of Agriculture's website, Mexico accounted for 63% vegetable imports to the US and 47% of fruit and nut shipments to the country.
Between 2000 to 2023, the value of horticultural shipments from Mexico to the US jumped more than fourfold in real terms (measured in 2023 dollars) from $3.9bn to $19.7 billion, the USDA figures show. On average during that period, some 91% of Mexico’s total annual horticultural exports were shipped to the US.
Trump has also lined up a 25% tariff on all imports from Canada, a move that, like the planned measure for shipments from Mexico, had been criticised by business groups, including trade associations in the food and drinks industry.
Like Mexico, Canada had lined up a series of retaliatory measures.
In a separate statement on Truth Social, posted before announcing the agreement with Sheinbaum, Trump said he had spoken to Canadian Prime Minister Justin Trudeau today. “Will be speaking to him again at 3:00pm,” Trump added.
The Distilled Spirits Council of the US, the Chamber of the Tequila Industry and Spirits Canada had issued a joint statement on Saturday in which they said they were “deeply concerned” the planned US tariffs on spirits from Canada and Mexico would “significantly harm all three countries and lead to a cycle of retaliatory tariffs that negatively impacts our shared industry”.
Trump has also announced an additional 10% tariff on imports from China, which has met with “strong opposition” from Beijing.
According to the South China Morning Post, China said it would file a claim at the WTO and take corresponding measures to safeguard its interests.
