[CTC] Mexico Reaches Deal With U.S. to Delay Trump Tariffs

[Arthur Stamoulis]

https://www.nytimes.com/live/2025/02/03/us/trump-tariffs
Mexico Reaches Deal With U.S. to Delay Trump Tariffs

President Trump said he would pause tariffs on Mexico for a month, but levies on Canada and China were still set to take effect on Tuesday. U.S. shares fell at the opening bell, following drops in Asian and European markets, amid fears of a trade war.

President Claudia Sheinbaum of Mexico struck a deal with the Trump administration to delay stiff tariffs, which were set to take effect on Tuesday, for a month as the two countries reached a series of agreements on border security. Ms. Sheinbaum agreed to deploy 10,000 troops, who President Trump said would be designated to stop the flow of migrants and illegal drugs across the U.S.-Mexico border.

In return, Mexico will get at least a temporary reprieve from the blanket 25 percent tariffs Mr. Trump announced on Saturday, as well as help from the U.S. government to stanch the movement of guns back over the border, Ms. Sheinbaum said on Monday. The agreement, two days after Mr. Trump also announced tariffs of 25 percent against Canada and 10 percent against China, came amid fears that the measures would disrupt the global economy, roiling stock markets around the world. <https://www.nytimes.com/live/2025/02/03/us/trump-tariffs#stocks-trump-tariffs>
Mr. Trump ordered the tariffs as a response to his concerns over the flow of migrants and drugs, particularly fentanyl, into the United States. While adding a partial carve out for Canadian energy and oil exports, the president acknowledged that his tariffs, which cover countries that account for more than a third of the products brought into the country, could cause “some pain” for consumers.

Over the weekend, Canada announced retaliatory levies of 25 percent <https://www.nytimes.com/live/2025/02/03/us/trump-tariffs#trump-tariffs-windsor-canada> on U.S. goods. China vowed to file a case against the United States at the World Trade Organization and take “corresponding countermeasures to firmly safeguard its rights and interests.”

Mr. Trump signaled on Sunday that Europe could be his next target <https://www.nytimes.com/live/2025/02/03/us/trump-tariffs#trump-tariffs-european-union>, telling the BBC that tariffs “will definitely happen with the European Union” and could come “pretty soon.” European leaders responded on Monday that a trade war with the United States would destabilize economies on both sides of the Atlantic Ocean.

Here’s what else to know:

Canada’s response: The Canadian government on Sunday published a list with hundreds of American goods imported into Canada that will face 25 percent tariffs starting Tuesday. Canada imported 30 billion Canadian dollars’ worth of those goods in 2024 (about $20 billion), and the list will be updated to include thousands more products in the next three weeks, as Canada escalates to a second stage of retaliation that will target another $86 billion worth of U.S. imports. Read more › <https://www.nytimes.com/live/2025/02/03/us/trump-tariffs#from-liquor-to-dishwashers-canada-details-us-goods-it-will-hit-with-tariffs>
Tariffs explained: Mr. Trump has insisted that his tariffs would not increase prices for American consumers and that if anyone pays the cost, it will be other countries. But a review of how tariffs work suggests that is not the case. Read more › <https://www.nytimes.com/live/2025/02/03/us/trump-tariffs#trump-tariffs-what-to-know>
U.S. businesses respond: Groups representing American fuel manufacturers, home builders, retailers and alcohol producers responded to the tariff orders with a common concern: that businesses’ costs would increase, and consumers would end up paying the price. Read more › <https://www.nytimes.com/live/2025/02/03/us/trump-tariffs#across-sectors-business-and-labor-groups-push-back-against-trumps-tariffs>

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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