After deploying 10,000 troops to its border to combat drug trafficking, Mexico earns a one-month tariff pause as U.S. and Mexican officials prepare for high-level negotiations

President Donald Trump announced a one-month pause on the newly imposed 25% tariffs on goods imported from Mexico after Mexican President Claudia Sheinbaum agreed to deploy 10,000 soldiers to the border.

The tariff pause was announced just two days after Trump had imposed 25% tariffs on goods from Mexico and Canada, and 10% tariffs on Chinese imports.

“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 as we attempt to achieve a deal between our two Countries.”

Donald Trump, President of the United States

During the discussions that led to this agreement, both leaders underscored the critical need to combat drug trafficking at the border.

“We had a good conversation with President Trump with great respect for our relationship and sovereignty; we reached a series of agreements. The Mexican National Guard troops being sent to the U.S. border would not only focus on halting the flow of fentanyl but would also be tasked with stopping the trafficking of high-powered weapons a point that has further raised hopes for enhanced cross-border security.”

Claudia Sheinbaum Pardo, President of México

These commitments signal a significant joint effort to address shared security concerns while mitigating the economic friction caused by unilateral tariff policies.

This move by the U.S. administration marks a pivotal moment in the ongoing trade dispute that has affected several major international relationships.

The tariffs, initially imposed as a punitive measure, have had an immediate impact on U.S.-Mexico trade relations, with the broader ramifications extending to North America.

Canadian Prime Minister Justin Trudeau also announced his country’s retaliatory 25% tariff on $155 billion worth of U.S. goods shortly before these latest developments.

The pause on tariffs is expected to provide breathing room for both sides to engage in earnest negotiations and potentially forge a more comprehensive trade deal.

Analysts note that this temporary suspension could prevent further escalation of trade tensions while offering an opportunity to resolve issues that have long plagued bilateral relations.

The strategic deployment of Mexican troops at the border, aimed at tackling drug trafficking and enhancing border security, is seen as a concrete step towards addressing the root causes of the dispute.

Markets have reacted to the news with a mix of relief and cautious optimism.

U.S. stocks, which had opened trading on a lower note following the announcement of the tariffs, regained most of those losses after news of the one-month pause broke.

The market response reflects investor confidence that this temporary measure might lead to a stabilization of trade relations, at least in the short term, and possibly set the stage for more sustained diplomatic engagement.

Notably, China has also entered the fray by announcing its intention to challenge the U.S. tariffs at the World Trade Organization, further complicating an already intricate global trade landscape.