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President Donald Trump said on Monday (Tuesday morning AEST) he agreed to "immediately pause" tariffs on Mexico for a month after a "very friendly" conversation with the country's president, Claudia Sheinbaum.
"I just spoke with President Claudia Sheinbaum of Mexico. 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," Trump wrote on Truth Social.
"These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country," he wrote.
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Trump on Saturday announced new tariffs on imports from Mexico, Canada and China.
The sweeping actions — scheduled to take effect on Tuesday — consisted of a 25 per cent duty on all imports from Mexico and most from Canada, where there was a carve-out for a 10 per cent tariff on energy products, and a new 10 per cent tariff on Chinese goods.
The extraordinary moves against America's three largest trading partners sent shockwaves through the North American economy, rattling businesses and the markets. The Dow tumbled nearly 600 points at the opening bell.
The agreement with Mexico sent stocks on the verge of a comeback.
"We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico," Trump wrote on his social media platform.
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"I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a "deal" between our two Countries."
Sheinbaum also posted on social media about the pause, saying she and Trump had reached agreements on security and trade.
Mexico will immediately reinforce the border with 10,000 members of its National Guard, while the US committed to working on preventing high-powered weapons from being trafficked to Mexico, Sheinbaum said.
