Donald Trump has decided to postpone by one month the implementation of the 25% tariffs on imports from Mexico, after speaking with the president of that country, Claudia Sheinbaum. This was stated by the Mexican president in a message on social media, where she explained the key points of the commitment. Mexico will deploy 10,000 National Guard soldiers on the border with the United States, while the United States "commits to work to prevent the trafficking of high-powered weapons to Mexico." According to Sheinbaum, both countries will begin working "at this very moment" in both areas. The White House has confirmed the agreement. A few hours later, Trump spoke with Canadian Prime Minister Justin Trudeau and reached a similar agreement.
The measure has halted the decline of Wall Street, whose S&P500 index was falling by almost 2.5% due to the U.S. announcement on Friday night of imposing 25% tariffs on all imports from Mexico and Canada and 10% on those from China. Trump spoke with Canadian Prime Minister Justin Trudeau this morning and will do so again at 9 p.m. Spanish time. However, the index is still more than one point below its opening level.
The agreement between Trump and Sheinbaum touches on two of the most sensitive points in the U.S.-Mexico relationship. On one hand, undocumented immigrants entering the U.S. pass through Mexico, as well as a considerable amount of illicit drugs entering the country (some are also produced in the U.S., such as methamphetamine). On the other hand, Mexican drug cartels obtain many of their firearms in the United States, especially in Texas, where the use of firearms is widespread and controls on their commercialization are very limited.
Low tariffs on China "underscore Trump's lack of interest in his always emphasized competition between the U.S. and China," as stated yesterday to this newspaper by Stan Veuger, senior economist at the liberal think tank American Enterprise Institute in Washington.