Mexico’s Sheinbaum, Trump say US agrees to pause tariffs for month – World

The United States has agreed to delay the start of tariffs on Mexican goods for one month, presidents Claudia Sheinbaum and Donald Trump said on Monday after holding talks.

However, there was no breakthrough yet in negotiations with Canada on an issue that has sparked fears of a global trade war.

As part of a series of agreements between the closely connected neighbours, Mexico will reinforce security along its border with the United States to fight drug trafficking, Sheinbaum announced.

“We had a good conversation with President Trump with much respect for our relationship and sovereignty,” Sheinbaum said on social media platform X.

“Mexico will immediately reinforce the northern border with 10,000 National Guard troops to prevent drug trafficking from Mexico to the United States, particularly fentanyl,” she said. “The United States is committed to working to prevent the trafficking of high-powered weapons to Mexico.”

Teams from the two countries would start working on Monday on the issues of security and trade, Sheinbaum said.

“Tariffs are paused for one month from now,” she added.

Trump confirmed the suspension in a social media post and said his talks with the Mexican leader had been “very friendly.” The two countries will negotiate during this one-month period, he added.

The US president also said he had also spoken to Canadian Prime Minister Justin Trudeau on Monday and was due to speak again at 3pm — but the White House said negotiations with Ottawa were not going as well.

Trump repeated his frequent claims that the United States is being unfairly treated by trade while pushing his argument that the tariffs were about a “drug war” from opioids “pouring through the borders of Mexico and Canada”.

US government figures show that only a minimal quantity of drugs comes via Canada.

Trump on Saturday announced sweeping tariffs on Mexico, Canada and China because of a “major threat” from illegal immigration and drugs, prompting Sheinbaum to vow retaliation.

Speaking to reporters after he flew back to Washington on Sunday evening from a weekend in Florida, Trump said he would speak with Sheinbaum and Trudeau on Monday morning. “I don’t expect anything very dramatic,” he added.

Trump has also hit China with a 10 per cent tariff in addition to levies already in place.

A fervent supporter of tariffs, Trump had always maintained that their impact would be borne by foreign exporters, without being passed on to American consumers, contradicting the opinion of a broad range of experts.

Earlier on Sunday he acknowledged, in a series of messages on his Truth Social network, that Americans may feel economic “pain” from his tariffs, but argued it would be “worth the price” to secure US interests.

China, Mexico and Canada are the top three US trade partners and all vowed to retaliate.

“Will there be some pain? Yes, maybe (and maybe not!)” Trump wrote on Sunday morning in all-caps on his Truth Social media platform. “But we will Make America Great Again, and it will all be worth the price that must be paid.”

Analysts expect the trade war to slow US growth and increase prices, at least in the short term, something the president had resisted acknowledging after frustration over rising costs was seen as a major factor in his 2024 election win.

Seeking to limit a spike in fuel prices, Trump has put the levy on energy imports from Canada at only 10pc.

The president has cited illegal immigration and the trafficking of the deadly opioid fentanyl as reasons for the “emergency” measures.

But on Sunday he also expressed general outrage at trade deficits, which he has long viewed as signs of unfair treatment against the United States.

“The USA has major deficits with Canada, Mexico, and China (and almost all countries!), owes 36 trillion dollars, and we’re not going to be the ‘Stupid Country’ any longer,” he wrote.

The tariffs announcements capped an extraordinary second week of Trump’s new term, with the president facing the worst US aviation disaster in years even as his administration moved to drastically overhaul the government in actions decried by critics as illegal.

‘51st state’

In a separate social media post, Trump took particular aim at Canada, repeating his call for America’s northern neighbour to become a US state.

Canadian backlash was swift, with video posted to social media showing fans at a Toronto Raptors game on Sunday booing during the US national anthem.

Trudeau vowed on Saturday to hit back with 25pc levies on select American goods worth Can$155bn (US$106.6bn), with a first round on Tuesday followed by a second one in three weeks.

Leaders of several Canadian provinces have already announced retaliatory actions as well, such as the immediate halt of US liquor purchases.

The White House has not publicly announced what actions could end the tariffs.

“It’s hard to know what more we can do, but we’re obviously open to any other suggestions that come our way,” Canada’s ambassador to the United States Kirsten Hillman told ABC News on Sunday.

Sheinbaum said she had directed her economy minister to “implement Plan B”, which includes unspecified “tariff and non-tariff measures”, promising to detail later today the steps she intends to take.

Trump said on Sunday he also planned to hit the European Union with tariffs “pretty soon”, to which the EU said earlier it would “respond firmly”.