Mexico, US Strike Last-Minute Deal to Avoid Trade War and Tariffs

In the last moment Mexico and the United States ( US ) have found themselves in a position to agree to a one month suspension of the tariffs that had the potential to lead to a full blown trade war between the two countries. The agreement was signed on Monday and it provides for the suspension of the 25% tariffs on Mexican imports that were to begin on Tuesday. The tariff announcement had already led to a plunge in the global markets on Monday as the Dow Jones Industrial Average fell more than 650 points before it began to rise later in the day.

Under the agreement, the Mexican President, Claudia Sheinbaum, agreed to deploy 10,000 members of the National Guard to Mexico’s northern border with the aim of preventing illegal migrants and fentanyl from entering the United States. In return, U.S. President Donald Trump promised to act to prevent American weapons from being transported to Mexico. “It was a very friendly conversation,” Trump posted on Truth Social, a social networking site he owns, and the two countries will continue to talk about these issues during the one month stay.

The conversation took place after the meeting of the representatives of the two countries. The secretaries of State, Treasury, and Commerce of Trump will work with their Mexican counterparts to ensure that the border issues are resolved within the time frame set.
However, the tension is still high between the two countries as the temporary agreement does not last for a long time. Trump warned that tariffs may be applied again if there is no significant change. For now, the attention will be paid to the main subjects, that is, fighting drugs and securing the borders, as both countries try to find a long term solution.