Following talks with Sheinbaum, the US and Mexico have paused Trump’s new monthly tariffs to negotiate trade and border security.
The United States and Mexico have agreed to postpone the implementation of new tariffs on Mexican products by Donald Trump for one month. The announcement was made after a discussion between Mexican President Claudia Sheinbaum and U.S. President Donald Trump. Mexico will deploy 10,000 soldiers to its northern frontier as part of the agreement to prevent drug trafficking. In the meantime, the ongoing trade tensions impacted financial markets, resulting in a decline in global stocks and visible indications of recovery in the cryptocurrency market.
The United States and Mexico have reached a temporary trade agreement
President Trump announced a 25% tariff on Mexican and Canadian products and a 10% tariff on Chinese imports. The tariffs implemented by Donald Trump were slated to commence on Tuesday. On the other hand, the White House verified that the tariffs on Mexico would be postponed for one month following discussions between the two leaders.
Trump announced on social media that negotiations between the United States and Mexico would occur during this time. “We also mutually consented to suspend the anticipated tariffs for one month to engage in negotiations,” Trump stated. Senior officials from both nations, including U.S. Secretary of State Marco Rubio and Mexican commerce representatives, will participate in the discussions.
Sheinbaum also commented on the agreement on social media, stating that the discussions were conducted with “great respect for our relationship and sovereignty.” She verified that Mexico would enhance its border security. At the same time, the United States pledged to halt the importation of high-powered weapons into Mexico.
In response to concerns regarding the trade war, stock markets have experienced a decline
Global financial markets responded to the trade developments by experiencing declines in equities in the United States, Europe, and Asia. Wall Street began the day with a decline, as the S&P 500 declined by 1.5%, as investors evaluated the potential for a protracted trade dispute.
The Canadian government responded by imposing 25% retaliatory tariffs on American products. The list of imports that will be impacted is anticipated to grow in the weeks ahead. Additionally, China declared it would pursue legal action against the United States at the World Trade Organization and implement “countermeasures.”
Trump expressed the possibility of imposing supplementary tariffs on the European Union shortly. Although no official announcement has been made, he stated in an interview with the BBC that “Tariffs will happen with the European Union.” European leaders cautioned that these measures could exacerbate the destabilization of global trade.
Mexico is planning to deploy troops to enhance border security
Mexico will deploy 10,000 soldiers to its northern frontier as part of the agreement to combat drug trafficking, with a particular emphasis on fentanyl. The decision is designed to address one of the principal concerns of the U.S. administration regarding border security.
Sheinbaum declared that Mexico’s forces would commence operations immediately. “Our teams will commence work on two areas today: security and trade,” she stated. In addition, the United States agreed to intensify its efforts to prevent firearms from reaching Mexican criminal organizations.
Mexico’s decision to deploy personnel is comparable to previous agreements between the United States and Mexico during Trump’s first term, during which Mexico stationed forces to mitigate migration flows. The action is anticipated to impact the forthcoming negotiations regarding the long-term trade policies of the two countries.
The cryptocurrency market is exhibiting indicators of recovery
The cryptocurrency market experienced a rebound despite the decline in traditional markets. The price of bitcoin, which had experienced a decline in recent days, has since risen to $99,074.51, with a 24-hour trading volume exceeding $113 billion. The price of Ethereum, which had been declining earlier, was traded at $2,714.79.
Dogecoin and XRP, among other cryptocurrencies, also experienced some recovery following their precipitous declines. In the face of uncertainty in conventional financial markets, investors may redirect their attention to digital assets.