After a phone conversation between US President Donald Trump and Mexican President Claudia Sheinbaum, the US has agreed to pause planned tariffs on Mexico for one month. In exchange, Sheinbaum committed to deploying 10,000 National Guard troops to the border to combat drug trafficking, particularly fentanyl.

Trump confirmed the temporary halt on social media while still moving forward with tariffs on Canada and China, which are set to take effect soon.

“I just spoke with President Claudia Sheinbaum of Mexico,” Trump wrote. “It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States. These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country.”

In exchange for this assistance with border security, Trump has placed a 30-day pause on the threatened tariff, during which time Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick will negotiate a deal.

“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two countries,” Trump concluded.

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“The United States is committed to working to prevent the trafficking of high-powered weapons to Mexico,” Sheinbaum said in a separate statement. “Our teams will begin working today on two fronts: security and trade.”

The pause aims to alleviate economic concerns from a potential tariff war that could impact American companies relying on Mexican exports.

Both leaders agreed to continue discussions on security and trade, but uncertainty remains regarding the longevity of this agreement and the potential for future tariffs.

Financial markets reacted cautiously to the news, indicating apprehension over future trade policies and their economic implications.

Meanwhile, outgoing Canadian Prime Minister Justin Trudeau took a more aggressive stance, announcing over the weekend that a retaliatory 25% tariff will be placed on all American goods, to be levied against $30 billion worth of American goods starting Tuesday, with an additional $125 billion set to follow in three weeks.

The tariffs will impact a range of products including American beer, wine, clothing, and household appliances.

“I think Canadians understand that we need to respond to this,” said Trudeau during a press conference on Sunday. “We’re certainly not looking to escalate, but we will stand up for Canada.”

Additionally, Trudeau hinted at potential non-tariff measures, such as restricting exports of critical minerals and blocking American companies from bidding on government contracts.

Economists warn that the escalating trade war could lead to increased prices for consumers in both countries.

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Connor Walcott is the lead writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”

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