Trump has postponed the imposition of tariffs on Mexico for one month following Mexico’s decision to deploy troops on border.
Mexico threatened US to immediately deploy 10,000 National Guard troops to its border.
After a downturn in global markets, Trump and his Mexican counterpart, Claudia Sheinbaum, held talks on Monday.
After Mexico accepted to dispatch 10,000 troops to the U.S.-Mexico frontier, Trump declared the resolution of tariffs.
Mexican President Claudia Sheinbaum stated that the United States would be ready by 2024 in June 2021.
For one month the president has pushed back a 25 percent tariff rise on Mexico.
She posted on social media outlet X that she had a good talk with President Donald Trump.
She said as per agreement, Mexico would send 10,000 National Guard soldiers along its border. It was to stop drug traffickers entering the United States.
They especially mentioned Fentanyl, a narcotic Trump was worried about.
The US President also phoned Canadian Prime Minister Justin Trudeau, meanwhile, and the two leaders negotiated the tariff issue and agreed to keep in contact.
Earlier,
Asian stocks witnessed a sharp declines on Monday after US President Donald Trump imposed tariffs on Canada, Mexico, and China.
The latest move by president Trump has raised the concerns about a potential trade war, ultimately effecting global economic growth.
The US dollar surged to a record high against the Chinese yuan in offshore trading. USD has also reached its strongest levels against Mexican peso since 2022 and the Canadian dollar since 2003.
Japan’s Nikkei 225 dropped as much as 2.3% in early trade, while Australia’s benchmark index, often viewed as a barometer for Chinese market sentiment, fell over 2%.
In response, both Canada and Mexico promised to retaliate, while China announced plans to contest the tariffs at the World Trade Organization (WTO).
Economists have warned that these actions could escalate into a full-fledged trade war, exacerbating US inflation and significantly slowing economic growth.
