Trump confirms that Mexican tariffs will be paused, says negotiations will start

“I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States. These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country. We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico. I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a “deal” between our two Countries.”

It’s interesting that Lutnick and Bessent will be there, which suggests it won’t just be about drugs.

I also wonder if this makes it less likely that there will be a deal with Canada, as this one-month period ties up those US officials. At the same time, it also shows that the US wants a deal and that tariffs are more of a threat than an economic policy, at least for now.

This article was written by Adam Button at www.forexlive.com.