WASHINGTON — President Trump announced Thursday a one-month postponement of the 25% tariffs on most Mexican goods, addressing concerns about a wider trade conflict.
This announcement followed Commerce Secretary Howard Lutnick’s earlier statement that tariff delays for Canada and Mexico were “likely.” No changes regarding new tariffs on Canada were specified.
This marks the second time Trump has delayed these tariffs by a month since their initial unveiling in early February. The delay applies to Mexican goods compliant with the USMCA trade agreement negotiated during Trump’s first term.
“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” Trump stated on Truth Social. “I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border.”
Details regarding the reasons for the temporary tariff relief for Mexico were not provided on Thursday.
Trump’s fluctuating tariff threats have caused turbulence in financial markets, reduced consumer confidence, and created uncertainty for businesses, potentially leading to delayed hiring and investment. Lutnick clarified that reciprocal tariffs, where the U.S. taxes imports from countries that tariff U.S. exports, will still be implemented on April 2.
Major U.S. stock markets saw a brief recovery after Lutnick’s comments but quickly resumed their downward trend from earlier in the week. The stock market’s decline this week is attributed to Trump’s tariff policies, with the S&P 500 now below its pre-Trump election level.
Sheinbaum stated on X (formerly Twitter) that she and Trump “had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results.”
Mexico has increased its efforts against cartels, deployed troops to the U.S. border, and extradited 29 high-profile cartel leaders sought by U.S. authorities to the Trump administration within a few weeks.
Canadian Prime Minister Justin Trudeau suggested on Thursday that his country anticipates a continued trade dispute with the United States.
Trudeau stated that the one-month pause “aligns with some of the conversations that we have been having with administration officials.”
The Canadian leader described the Trump administration’s action as a “promising sign,” but emphasized that “the tariffs remain in place and therefore our response will remain in place.”
Lutnick noted that both Canada and Mexico “have done a good job offering us ever more work” to stop fentanyl at the border, a key condition set by Trump for permanently lifting the tariffs. Trump has cited various reasons for the tariffs, including increasing federal revenue, encouraging manufacturing in the U.S., and reducing trade surpluses with both countries.
Associated Press writers Josh Boak and Megan Janetsky contributed to this report. Janetsky reported from Mexico City.