A recent phone call between Donald Trump and Claudia Sheinbaum has led to a pause in the announcement of 25% tariffs on all exports from Mexico to the United States. This decision came after a tumultuous weekend for relations between the United States and Mexico. The conversation between Sheinbaum and Trump resulted in an agreement to extend negotiations between the two partners for 30 more days.
Sheinbaum announced that Mexico will reinforce its northern border with 10,000 National Guard elements to prevent drug trafficking, particularly Fentanyl, from entering the United States. This announcement was made just as Mexico was about to reveal its retaliatory measures against the United States. Meanwhile, the United States has promised to work on preventing high-power arms trafficking to Mexico, which often ends up in the hands of drug cartels.
The commercial war between the two countries has been paused following a call between Washington and Mexico City. Trump had previously signed an executive order confirming 25% tariffs on Mexico and Canada, as well as 10% on China’s exports. Trump described the call with Sheinbaum as a “very friendly conversation” and emphasized the importance of high-level negotiations between the two countries. The United States will be represented by Secretary of State Marco Rubio, Treasury Secretary Scott Besent, and Commerce Secretary Howard Lutnick, while Mexico will be represented by Secretary of Economy Marcelo Ebrard.
According to Mexican analyst Santiago Geneva, the biggest winner in this situation is Donald Trump, as he can now claim that his strategy is working. Mexico has agreed to work on protecting the southern border and preventing migration and drug trafficking. Sheinbaum has consistently maintained a cordial tone and a willingness to reach agreements with Trump, employing his “Cold Head” strategy. Mexico had not previously announced its response to Trump’s tariff punishment, but Sheinbaum had mentioned that the country had a “plan A, plan B, and plan C” to deal with the situation.
Geneva believes that this development could be a prelude to forcing a renegotiation of the T-MEC (United States-Mexico-Canada Agreement). The agreement had stipulated a review in 2026, but the current circumstances may prompt a full review. paradoxically, the T-MEC was negotiated by Trump, who now claims that it does not benefit the United States. The announcement of tariffs applied to both Mexico and Canada, but it appears that Trump’s strategy involves negotiating with each country separately.
Canadian Prime Minister Justin Trudeau announced that the United States will also suspend the implementation of 25% tariffs for 30 days. Trudeau revealed that Canada will appoint a “Tsar” to combat Fentanyl, adding that the country will increase surveillance of its border, launch a joint task force with the United States to combat organized crime, and include drug cartels in the list of terrorist organizations. The Canadian government had previously announced that it would apply 25% levies to $30 billion worth of American exports in retaliation for the tariffs.