U.S. tariffs on Mexico to be paused for a month, Trump says
WASHINGTON/BRUSSELS (Reuters) - U.S. President Donald Trump will pause new tariffs on Mexico for one month after Mexico agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal drugs, particularly fentanyl, he said on Monday on social media.
Mexican President Claudia Sheinbaum said the agreement also includes a U.S. commitment to act to prevent trafficking of high-powered weapons to Mexico. The two leaders spoke by phone on Monday, just hours before U.S. tariffs on Mexico, China and Canada were set to take effect.
The two counties will use the month-long pause to engage in further negotiations, Trump said.
U.S. stocks and other global financial markets slumped on the looming tariffs, while world leaders responded to Trump's threats to expand tariffs to the European Union as well.
The benchmark S&P 500 fell 1.7% at the opening bell, on the heels of the year's biggest daily losses on a string of Asian and European bourses over fears of an economically damaging trade war.
Trump said on Monday he had spoken with Canadian Prime Minister Justin Trudeau and would do so again at 3 p.m. ET (2000 GMT). Both Canada and Mexico had announced retaliatory tariffs of their own. The tariffs on Canada and China remain poised to take effect on Tuesday.
Speaking in Washington on Sunday after returning from his Mar-a-Lago estate, Trump indicated that the 27-nation European Union would be next in the firing line, but did not say when.
"They don't take our cars, they don't take our farm products. They take almost nothing and we take everything from them," he told reporters.