On February 3, 2025, U.S. President Donald Trump and Mexican President Claudia Sheinbaum announced a one-month delay in the implementation of 25% tariffs on goods from Mexico. The agreement was reached following a phone call where Sheinbaum committed to deploying 10,000 Mexican soldiers to the U.S. border to combat drug trafficking, particularly fentanyl.
Trump stated that the delay allows both countries to negotiate contentious issues, emphasizing the goal of achieving a fair agreement. Sheinbaum confirmed the tariff suspension in her social media post.
Historically, the U.S., Canada, and Mexico have maintained a free trade agreement, with no additional tariffs imposed until Trump's recent announcement. The tariffs were originally intended to address concerns over illegal immigration and drug smuggling.
In response to Trump's initial tariff announcement, Canadian Prime Minister Justin Trudeau declared that Canada would impose similar tariffs on U.S. goods, totaling approximately $155 billion. Meanwhile, Sheinbaum indicated Mexico's readiness to implement retaliatory measures to protect its interests.
Experts predict that the tariffs will raise consumer prices in the U.S., with Trump viewing them as a tool to reduce trade deficits and boost domestic production. The economic implications of these tariffs could be significant for North America, potentially impacting trade relations and economic growth.