US President Donald Trump said that he has postponed 25% tariffs on most goods from Mexico for a month after a conversation with the country’s leader.
Mr Trump’s announcement comes after his commerce secretary, Howard Lutnick, said tariffs on both Canada and Mexico would “likely” be delayed. No change was announced regarding the new tariffs imposed on Canada.
This is the second one-month postponement Mr Trump has announced since first unveiling the import taxes in early February.
The reprieve would apply to goods that are compliant with the trade agreement Mr Trump negotiated with Canada and Mexico in his first term.
“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” Mr Trump posted on Truth Social. “I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border.”
US commerce secretary Howard Lutnick (Ben Curtis/AP)
No details were released on Thursday about what led to the temporary lifting of tariffs on Mexico.
Mr Trump’s on-again, off-again tariff threats have impacted financial markets, lowered consumer confidence and enveloped many businesses in an uncertain atmosphere that could delay hiring and investment.
Mr Lutnick emphasised that reciprocal tariffs, in which the United States applies import taxes on countries that tariff US exports, will still be implemented on April 2.
Major US stock markets bounced off lows after Mr Lutnick spoke, but only briefly. Significant declines already seen this week resumed within an hour.
The stock market has fallen steadily this week in response to Mr Trump’s tariff policies and the S&P 500 stock index is now below where it was before Mr Trump was elected.
Ms Sheinbaum said she and Mr Trump “had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results”, on a post on social media platform X.
Mexico has cracked down on cartels, sent troops to the US border and delivered 29 top cartel bosses long-chased by American authorities to the Trump administration in a span of weeks.
Also on Thursday, Canadian Prime Minister Justin Trudeau indicated that he expects his country will be in a trade war with the United States for the foreseeable future.
Mr Trudeau said the broader month-long pause “aligns with some of the conversations that we have been having with administration officials”.
The Canadian leader said the move by the Trump administration was a “promising sign”, but it also “means that the tariffs remain in place and therefore our response will remain in place”.