Washington, Feb 4: US President Donald Trump paused tariffs on Mexico for one month after last-minute talks Monday — but there was no breakthrough yet in negotiations with Canada on an issue that has sparked fears of a global trade war.As world markets slumped, Trump and his Mexican counterpart Claudia Sheinbaum both announced the halt in the levies after she agreed to send 10,000 troops to the US-Mexico border following talks on Monday.
Trump said on his Truth Social network that after the “very friendly conversation” he had “agreed to immediately pause the anticipated tariffs for a one month period.
Financial markets, businesses and consumers are trying to prepare for the possibility of the new tariffs. Stock market indices opened with a modest selloff, suggesting some hope that the import taxes that could push up inflation and disrupt global trade and growth would be short-lived.
But the outlook reflected a deep uncertainty about a Republican president who has talked with adoration about tariffs, even saying the US government made a mistake in 1913 by switching to income taxes as its primary revenue source. Trump said Sunday the tariffs would lift if Canada and Mexico did more to crack down on illegal immigration and fentanyl smuggling, though there are no clear benchmarks. Trump also said the US can no longer run a trade imbalance with its two largest trade partners.