Trump backtracks and postpones tariffs on Mexico for a month

WashingtonDonald Trump's tariffs against Mexico have lasted two days. The President of the United States has announced that he has agreed with the Mexican President, Claudia Sheinbaum, to postpone trade tariffs for another month as a gesture of "courtesy". "I have agreed that Mexico will not be required to pay tariffs on any product included in the T-MEC Agreement," Trump wrote in a Truth Social post. The T-MEC is the free trade agreement between the United States and Mexico, which the Republican himself implemented in 2020 to replace NAFTA. The extension will last until April 2, the date on which reciprocal tariffs are supposed to come into effect for everyone.

"Our relationship has been very good, and we are working hard, together, at the border, both to stop the entry of illegal immigrants into the United States and to stop the trafficking of fentanyl. Thank you to President Sheinbaum for her great work and cooperation!" the president wrote. Just two days ago, just as the tariffs had gone into effect, Trump was defending the tariffs in Congress as the best way to create wealth for the country. Words were one thing, but actions are another. Commerce Secretary Howard Lutnick already said on Fox on Tuesday that tariffs in Canada and Mexico could be revoked as of Wednesday.

Much of the fresh produce sold in American supermarkets, such as avocados, strawberries or tomatoes, comes from Mexico. By 2023, almost three-quarters of American agricultural imports from Mexico were vegetables, fruits, beverages and distilled spirits, according to the US Department of Agriculture. Fresh produce – fruits and vegetables – given their quick expiration and the impossibility of storing them for long periods of time, were expected to be the first to reflect the consequences of the trade war. Which meant that the first to notice the rise in prices would be American citizens. Many of the people who voted for Trump did so because they expected the cost of the shopping basket to go down.

The grace month is not only a way to avoid the inflationary effect of tariffs, but also a tool to clamp down on Canada. Within the US, Mexico and Canada triangulation, Quebec seems to be the one in the worst position. Trump has repeatedly insisted on turning Canada into the 51st state. On Tuesday, when the tariffs came into effect, Canadian Prime Minister Justin Trudeau accused the Republican of wanting to "collapse Canada's economy to facilitate its annexation."

Trudeau called Trump yesterday, but was not as lucky as Sheinbaum. The tycoon defined the call as "a bit friendly," but insisted that he did not see enough progress on Canada's part to reduce the entry of fentanyl into the United States. Reason why he would not give Trudeau another truce. According to federal statistics, only 0.2% of fentanyl seizures at the U.S. border occur at the Canadian border.

The postponement of the 25% tariffs on Mexican products comes the day after the White House also announced an exception for vehicles imported from Mexico and CanadaThe decision was made at the request of the Big Three American carmakers: Ford, General Motors and Stellantis. Taxes on Mexican imports were expected to have a major impact on the US car industry. Many American car companies manufacture their cars in Mexico or other countries to reduce costs. In fact, the manufacture of American cars on Mexican territory is possible thanks to a trade agreement negotiated by Trump during his previous presidency.