Trade Cases

US shelves Mexico tariffs until next month

Written by Laura Miller

February 3, 2025

Mexican President Claudia Sheinbaum and US President Donald Trump reached an agreement to stave off blanket tariffs on Mexican goods for at least another month.

Trump had said via executive order on Saturday that 25% tariffs on Canada and Mexico and 10% on China would be implemented starting on Tuesday, Feb. 4. He justified the orders by accusing the countries of failing to stop drug trafficking, citing fentanyl in particular.

“We categorically reject the slander that the White House is making against the Mexican government of having alliances with criminal organizations,” Sheinbaum responded. “If such an alliance exists anywhere, it is in the armories of the United States that sell high-powered weapons to these criminal groups.”

She proposed a working group for the two sides to discuss the issues. “It is not by imposing tariffs that problems are resolved, but by talking and dialoguing,” she added.

Monday’s agreement

The two leaders conversed Monday morning and took to social media shortly thereafter to tout their deal.

Sheinbaum said Mexico agreed to send 10,000 members of its National Guard to the US-Mexico border to prevent drug trafficking. At the same time, the US committed to do its part to stop high-powered weapons trafficking.

“We had a good conversation with President Trump with great respect for our relationship and sovereignty,” Sheinbaum stated on X, formerly Twitter. “Our teams will begin working today on two fronts: security and trade.”

“It was a very friendly conversation,” Trump also said on social media, “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.”

He added that he looks forward to participating in the negotiations with Sheinbaum “as we attempt to achieve a “deal” between our two Countries.”

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

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