President Donald Trump announced on Thursday a one-month delay of tariffs on select products from Mexico, temporarily exempting goods compliant with the United States-Mexico-Canada Agreement (USMCA).
The decision followed a conversation between Trump and Mexican President Claudia Sheinbaum, both leaders confirmed. The delay is part of ongoing trade negotiations and cooperation on border security and the fight against fentanyl trafficking.
“Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl,” Trump posted on Truth Social. “Thank you to President Sheinbaum for your hard work and cooperation!”
Sheinbaum echoed the sentiment on social media, calling the conversation “excellent and respectful” while emphasizing their mutual commitment to border collaboration and sovereignty.
Impact on Trade and Markets
The temporary tariff exemption will apply to all Mexican goods meeting USMCA content requirements, Commerce Secretary Howard Lutnick confirmed. The decision is expected to ease tensions among U.S. automakers and other industries dependent on cross-border supply chains.
However, the broader impact of tariffs remains significant. Earlier this week, the U.S. imposed 25% tariffs on goods from Mexico and Canada and 10% tariffs on Chinese imports, doubling the rates from the previous month.
Despite the tariff delay, financial markets continued to react negatively. On Thursday, the Dow Jones Industrial Average fell approximately 400 points (0.9%), the S&P 500 dropped 1.5%, and the Nasdaq plunged 2%. Major U.S. automakers, including Ford, General Motors, and Stellantis, saw their stock prices decline.
Industry Reactions
The American Automotive Policy Council (AAPC), which represents Ford, GM, and Stellantis, praised the temporary exemption. AAPC President Matt Blunt stated, “American Automakers applaud President Trump for recognizing that vehicles and parts that meet the high USMCA content requirements should be exempt from these tariffs.”
The delay marks a critical moment in the evolving trade landscape, as both countries continue negotiations on long-term solutions for border security, immigration, and economic cooperation.
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