Trump pauses tariffs on Mexican imports, holds further talks with Canada

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Washington: President Donald Trump has pulled his threat of a 25 per cent tariff on US imports from Mexico, saying he would instead work on a “deal” with President Claudia Sheinbaum over the next month after she agreed to send Mexican troops to the border.

Trump and Canada’s Prime Minister Justin Trudeau were also holding urgent talks on Monday, but the president had not yet backed down on his planned tariffs on Canada, which were due to come into effect on Tuesday. The two were due to speak again at 3pm (7am Tuesday AEDT).

US President Donald Trump said the tariffs on Mexico would be “paused” for a month while a deal is negotiated.Credit: Bloomberg

Sheinbaum and Trump announced 10,000 members of Mexico’s National Guard would be sent to the US-Mexican border with a focus on preventing the trafficking of fentanyl, as well as illegal immigration. The US would also do more to stop trafficking of assault weapons into Mexico, Sheinbaum said.

Following the “very friendly conversation”, Trump said he would pause the planned tariffs for one month “as we attempt to achieve a deal between our two countries”. Mexico’s retaliatory measures would also be stayed.

On the US side, the deal would be negotiated by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent and Secretary of Commerce Howard Lutnick.

The backdown prompted US stock markets to rise on Monday morning, partly recovering the losses incurred at the open following Trump’s tariff announcement on the weekend.

Mexico’s President Claudia Sheinbaum said she would send 10,000 members of her country’s National Guard to the US-Mexico border.

Mexico’s President Claudia Sheinbaum said she would send 10,000 members of her country’s National Guard to the US-Mexico border.Credit: AP

While Trump did not comment directly on his talks with Trudeau, he adopted a negative tone in a post on his TruthSocial account, raising fresh concerns about the operations of American banks.

“Canada doesn’t even allow US banks to open or do business there. What’s that all about?” he said. “Many such things, but it’s also a drug war, and hundreds of thousands of people have died in the US from drugs pouring through the borders of Mexico and Canada.”

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