US President Donald Trump will pause new tariffs on Mexico for one month after Mexico agreed to reinforce its northern border to stem the flow of illegal drugs.
The White House confirmed that an extra 10,000 National Guard members would be deployed to Mexico’s border to halt the flow of drugs such as fentanyl, which have ravaged American communities.
Both countries will use the pause to engage in further negotiations, Mr Trump said.
Mexican President Claudia Sheinbaum said the agreement also includes a US commitment to act to prevent trafficking of high-powered weapons to Mexico.
The two leaders spoke by phone on Monday, just hours before US tariffs on Mexico, China and Canada were set to take effect.
Mr Trump said on Monday he had spoken with Canadian Prime Minister Justin Trudeau and would do so again at 8pm UK time.
Both Canada and Mexico have announced retaliatory tariffs of their own.
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.
Mexico is facing a 25% tariff, while Canada would be charged 25% on imports to the US and 10% on its energy products.
Beijing is facing a 10% additional tariff due to its role in the making and selling of fentanyl, the White House said.
EU leaders meeting at an informal summit in Brussels on Monday said Europe would be prepared to fight back if the U.S. imposes tariffs, but also called for reason and negotiation.
Mr Trump used his Monday social media post to repeat his complaints that Canada has been uncooperative, despite decades of friendship and economic partnership.
"Canada doesn't even allow US Banks to open or do business there," Trump posted. "What's that all about? Many such things, but it's also a DRUG WAR, and hundreds of thousands of people have died in the U.S. from drugs pouring through the Borders of Mexico and Canada.”
Financial markets, businesses and consumers are bracing for the impact of the new tariffs that also include an import tax against China.
