Trump pauses Mexico tariffs for one month
In exchange, Mexico will reinforce their border with 10,000 members of the National Guard to help with drug trafficking, Mexican President Claudia Sheinbaum said.
LOS ANGELES – Mexico’s president said Monday that President Trump’s recently-announced tariffs against the neighbor to the south have been paused for one month.
“Mexico will reinforce the northern border with 10,000 members of the National Guard immediately, to stop drug trafficking from Mexico to the United States, in particular fentanyl,” Sheinbaum posted on X. “The United States commits to work to stop the trafficking of high powered weapons to Mexico.”
Over the weekend, Trump declared an economic emergency in order to place duties of 10% on all imports from China and 25% on imports from Mexico and Canada.
SUGGESTED: Trump pauses tariffs on Mexico: Here’s why
Import taxes were still in place for Canada and China to begin on Tuesday. Mexico and Canada have since ordered retaliatory tariffs.
Trump said that Americans could feel “some pain” from the emerging trade war triggered by his tariffs.
“WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!),” Trump said in a social media post. “BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”
The president also tried to clarify his post about the possible inflation, saying on Sunday: “We may have in the short term, a little pain, and people understand that. But long term, the United States has been ripped off by virtually every country in the world.”
About one-third of US imports come from Canada, Mexico, and China.
SUGGESTED: Trump: Tariffs could cause ‘some pain;’ and ‘definitely’ widening to EU
Here are the products that will be impacted.
Food
Mexico is the largest supplier of fruits and vegetables to the U.S., while Canada leads in exports of grain, livestock and meats, poultry, and more.
According to the U.S. Agriculture Department, the U.S. also imports more than 80% of its avocados from Mexico – so expect the price of your Super Bowl guacamole to skyrocket.
Canada is also the biggest supplier of maple syrup and cherry tomatoes in the U.S.
Trump tariffs could make these products more expensive
President Trump on Monday agreed to delay the Mexico tariffs for a month in exchange for more troops at the border.
Gas prices
The 10% tariff on Canadian crude oil mens higher prices at the pump, as Canada serves as the top exporter to the U.S.
According to the U.S. Energy Information Administration, the U.S. imported $97 billion worth of oil and gas from Canada last year.
Steel
Canada and Mexico are the largest and third-largest exporters of steel to the United States, respectively.
Canada now accounts for nearly a quarter of steel imported by American businesses by weight, while Mexico accounts for about 12%, according to government data provided by the American Iron and Steel Institute, an industry trade group.
Beer and alcohol
Higher prices for some of America’s favorite liquors like tequila and the nation’s favorite beer – Modelo – are predicted.
In 2023, the U.S. imported $5.69 billion of beer and $4.81 billion of alcohol from Mexico, according to International Trade Administration data.
Home construction and furniture
Canada supplies 30% of lumber the U.S. uses annually.
Consumer electronics
When it comes to the tariffs on China, consumers are likely to see prices increase for electronics, appliances and toys.
China is the top exporter of smartphones, laptops, TVs, gaming consoles and all the parts that comprise them, with Beijing bringing in $146 billion worth of such imports in 2023, according to the International Trade Commission.
China’s business accounts for 78% of production of smartphones, 87% of video game consoles and 79% of laptops, according to the trade group the Consumer Technology Association.
