Mexican President Claudia Sheinbaum announced that, following a phone conversation with U.S. President Donald Trump on February 3, 2025, an agreement was reached to suspend the 25% tariffs on Mexican products for one month.
During her morning press conference, Sheinbaum emphasized that this decision was not only the result of diplomatic negotiations but also the pressure exerted by various sectors in both Mexico and the United States. She explained that business leaders, trade chambers, politicians, governors, and members of Congress from both countries voiced their opposition to the tariffs, arguing that they would harm the economy and the bilateral trade relationship.
As part of the agreement, Mexico will deploy 10,000 National Guard members to the northern border to strengthen efforts against drug trafficking, with a special focus on fentanyl. In return, the U.S. government has committed to intensifying efforts to curb the flow of high-caliber weapons into Mexico.
The announcement has been welcomed by international leaders, business groups, and organizations, who have praised Sheinbaum’s leadership in preventing an economic standoff between the two nations. The Mexican president expressed confidence that significant progress could be made within this month, potentially leading to a permanent suspension of the tariffs. Additionally, she announced the creation of working groups between both governments to address trade and security issues in a coordinated manner.
Sheinbaum reaffirmed her commitment to economic stability and international cooperation, stating that she will continue seeking solutions through dialogue and diplomacy.
Impact of the Tariffs on the Border Wall Debate
The proposed tariffs had the potential to destabilize the close economic relationship between Mexico, the U.S., and Canada, which has been built over decades of free trade agreements. Industries such as automotive manufacturing, where parts cross borders multiple times, would have been severely affected. The Financial Times highlighted that such disruptions could lead to significant economic instability, potentially pushing the region into a recession.
The temporary suspension of tariffs is seen as a win for diplomatic efforts, but it also highlights the delicate balance between security concerns and economic stability.