Contact Me By Email

Contact Me By Email

Monday, February 03, 2025

Trump Tariffs Live Updates: Mexico Says It Reached Deal to Delay Tariffs - The New York Times

Live Updates: Mexico Reaches Deal With U.S. to Delay Trump Tariffs

"President Trump said he would pause tariffs on Mexico for a month, but levies on Canada and China were still set to take effect on Tuesday. U.S. shares fell at the opening bell, following drops in Asian and European markets, amid fears of a trade war.

Trucks at a standstill on a highway.
Cargo trucks waiting to enter Mexico on Saturday in San Diego.Ariana Drehsler for The New York Times

Pinned

President Claudia Sheinbaum of Mexico struck a deal with the Trump administration to delay stiff tariffs, which were set to take effect on Tuesday, for a month as the two countries reached a series of agreements on border security. Ms. Sheinbaum agreed to deploy 10,000 additional troops, who President Trump said would be designated to stop the flow of migrants and illegal drugs across the U.S.-Mexico border.

In return, Mexico will get at least a temporary reprieve from the blanket 25 percent tariffs Mr. Trump announced on Saturday, as well as help from the U.S. government to stanch the movement of guns back over the border, Ms. Sheinbaum said on Monday. The agreement, two days after Mr. Trump also announced tariffs of 25 percent against Canada and 10 percent against China, came amid fears that the measures would disrupt the global economy, roiling stock markets around the world.

Downtown Laredo, Texas, a block from an international bridge, on Saturday.Gabriel V. Cárdenas for The New York Times

How the U.S. economy will be impacted by tariffs is not yet clear. So, too, is the Federal Reserve’s response in an environment of high inflation, suggesting officials will keep further interest rate cuts on hold until they gain additional clarity on the outlook.

Susan Collins, president of the Federal Reserve Bank of Boston, endorsed that view on Monday, saying that there was no urgency to make additional policy decisions at this time.

S&P 500

Jan. 24 Jan. 27 Jan. 28
The Ambassador Bridge, a crossing between Detroit and Windsor, Ontario, on Saturday.Ian Willms for The New York Times

Canada found itself in a precarious position on Monday morning after Mexico cut a deal with President Trump to postpone tariffs in exchange for a major deployment of forces along the border between the two countries.

Prime Minister Justin Trudeau of Canada spoke to President Trump on Monday morning but no such compromise was reached between the two. A senior Canadian government official with knowledge of the call said the situation was still in flux ahead of a second phone call between the two leaders scheduled for 3 p.m. Eastern, but did not express optimism that a compromise could be reached.

Emiliano Rodríguez Mega
Feb. 3, 2025, 11:24 a.m. ET

“Sovereignty is not negotiable,” President Claudia Sheinbaum of Mexico said in closing at the news conference. “An indisputable factor is the dignity of the people, of the nation and sovereignty. And within this framework, agreements are reached.” Officials in the room applauded.

Luis Antonio Rojas for The New York Times
Annie Correal
Feb. 3, 2025, 11:13 a.m. ET

President Claudia Sheinbaum of Mexico said that the 10,000 Mexican national guard troops being sent to the border would be pulled from other parts of the country and would be in addition to security forces already there. She said it was important for “humanitarian” reasons for Mexico to help control the flow of fentanyl into the United States, and she said there was a plan to deploy the troops immediately.

Danielle Kaye
Feb. 3, 2025, 11:11 a.m. ET

The peso and Canadian dollar, which had declined against the U.S. dollar because of the looming threat of tariffs, started to recover today after Claudia Sheinbaum, Mexico’s president, said tariffs on goods from Mexico would be delayed. The peso has regained all of its losses since Friday afternoon.

Emiliano Rodríguez Mega
Feb. 3, 2025, 11:10 a.m. ET

Mexico’s economy minister, Marcelo Ebrard, said the U.S. economy depended greatly on the plants and industrial complexes that American companies have established in Mexico. He recalled that the chief executive of Ford recently told him that his two most productive plants were in central and northern Mexico.

“It is in the strategic interest of the United States that this integration is not only maintained but grows in the coming years,” Ebrard told reporters.

Luis Antonio Rojas for The New York Times
The Yangshan Port in Shanghai. China is by far the biggest source for low-value packages shipped to the United States.The New York Times

President Trump’s decision to impose hefty tariffs on Canada, Mexico and China included a little-noticed but significant change to how online purchases will be taxed when they enter the United States.

One provision of Mr. Trump’s executive order will increase costs for more than 80 percent of U.S. e-commerce imports. The decision could shift the landscape for online sales from Chinese vendors like Shein and Temu that have swiftly expanded their market share by sending cheap goods into the United States.

Annie Correal
Feb. 3, 2025, 11:01 a.m. ET

President Claudia Sheinbaum of Mexico called her deal with the Trump administration — averting tariffs for a month and cooperating to curb the flow of drugs and weapons — a “good agreement.” She also said she had told Trump about the Mexican government’s new campaign to discourage its people from using fentanyl: Posters and digital billboards have recently appeared across the country contrasting images of despair with family scenes and urging Mexicans to “Choose Happiness.” With a smile, Sheinbaum said Trump had said of the campaign, “Send it to me.” 

Emiliano Rodríguez Mega
Feb. 3, 2025, 11:14 a.m. ET

Sheinbaum again stressed that her call with Trump was “a very respectful” conversation. “There is a relationship of respect and of equals, which is what is important,” she said.

Emiliano Rodríguez Mega
Feb. 3, 2025, 10:56 a.m. ET

Mexico will also focus on expanding an import substitution plan, dubbed Plan Mexico, Sheinbaum said at the news conference. The program essentially seeks to curb imports from countries like China, start producing those goods in Mexico and strengthen Mexican industries. The goal, she said, was to revive the “Made in Mexico” label on various products.

Alan Rappeport
Feb. 3, 2025, 10:50 a.m. ET

Trump confirmed on Truth Social that he is pausing tariffs on Mexico for a month after it agreed to send soldiers to the border to stop the flow of drugs and migrants. He said his secretaries of state, commerce and the Treasury would engage in further negotiations. “I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” Trump wrote.

Emiliano Rodríguez Mega
Feb. 3, 2025, 10:47 a.m. ET

Trump brought up the issue of the trade deficit that the United States has with Mexico, Sheinbaum said at the news conference. “I told him that, in fact, it was not a deficit, that we had a trade agreement, that we are trade partners,” she said. She told him that the current U.S.-Canada-Mexico trade agreement was “the best way” to continue competing against China and other regions of the world.

Luis Antonio Rojas for The New York Times
Emiliano Rodríguez Mega
Feb. 3, 2025, 10:52 a.m. ET

Besides security and trade, Mexico will continue holding high-level discussions on migration with the United States, Sheinbaum added. Speaking about defending Mexican nationals in the U.S., she said: “They will always have our support, always, above anything else.”

Zolan Kanno-Youngs
Feb. 3, 2025, 10:46 a.m. ET

A White House official confirms that Trump’s promised tariffs on Mexico are on hold for now.

Danielle Kaye
Feb. 3, 2025, 10:45 a.m. ET

Investors seem to be embracing news from Mexico’s president that tariffs on Mexico will be put on hold for a month. The S&P 500 and tech-heavy Nasdaq regained some of their losses from earlier this morning, with the indexes now down roughly 1 percent.

Sarah Yenesel/EPA, via Shutterstock
Matina Stevis-Gridneff
Feb. 3, 2025, 10:44 a.m. ET

A senior Canadian government official familiar with the call between President Trump and Prime Minister Justin Trudeau this morning said that they were not optimistic about the possibility that Canada would be able to get a reprieve from tariffs similar to that of Mexico, but that the situation was still in flux. The two leaders are due to speak by phone again at 3 p.m. Eastern.

Emiliano Rodríguez Mega
Feb. 3, 2025, 10:43 a.m. ET

“It was a long conversation,” President Claudia Sheinbaum of Mexico said at a news conference of the phone call she had this morning with President Trump. When Trump asked her how long she wanted to put the tariffs on hold, she said she replied: “Forever.” The two leaders then agreed to put them on hold for a month, Sheinbaum said, “and I am sure that in this month we are going to give good results.”

Colby Smith
Feb. 3, 2025, 10:41 a.m. ET

President Trump’s top economic advisor, Kevin Hassett, hit out at Canada for retaliating against U.S. tariffs, saying it “misunderstood” the intent of the measures. “This is not a trade war. This is a drug war,” he said on CNBC this morning. Hassett, the director of the National Economic Council, praised Mexico for taking steps to address fentanyl smuggling. A deal has now been reached with Mexico to delay tariffs.

Hassett said the tariff measures created “a lot of leverage for the United States” and made clear that resolving the fentanyl crisis was the “No. 1 policy issue” for the administration.

Emiliano Rodríguez Mega
Feb. 3, 2025, 10:29 a.m. ET

U.S. tariffs on Mexico, which were set to take effect tomorrow, will be put on hold for a month, President Claudia Sheinbaum said on X. Mexico has reached a series of agreements with the Trump administration, saying it will reinforce the border with 10,000 Mexican National Guardsmen to counter drug trafficking, specifically fentanyl. The United States is also expected to prevent the trafficking of high-powered weapons into Mexico. “Our teams will begin work today on two areas: security and trade,” Sheinbaum said.

Danielle Kaye
Feb. 3, 2025, 9:36 a.m. ET

Major U.S. stock indexes fell at the start of trading this morning, with the S&P 500 down roughly 1.5 percent and the tech-heavy Nasdaq about 1.8 percent lower. President Trump’s tariffs are sending shock waves through markets around the world.

Michael M. Santiago/Getty Images
Simon Romero
Feb. 3, 2025, 9:25 a.m. ET

Mexico’s finance minister, Rogelio Ramírez de la O, is on a call seeking to reassure international investors. He said Mexico has $230 billion in reserves, enough to cover four and a half months of imports, as well as $44 billion in international credit lines, including $35 billion via the International Monetary Fund and $9 billion through a credit swap line with the U.S. Treasury.

Alan Rappeport
Feb. 3, 2025, 9:19 a.m. ET

Trump said on social media that he had just spoken to Prime Minister Justin Trudeau of Canada and that they would speak again at 3 p.m. He complained about U.S. banks’ lack of access to the Canadian market and of an ongoing “drug war,” referring to fentanyl entering the U.S. from Canada. 

Alan Rappeport
Feb. 3, 2025, 9:26 a.m. ET

Last year, U.S. Customs and Border Protection agents intercepted about 19 kilograms of fentanyl at the northern border, compared with almost 9,600 kilograms at the border with Mexico, where cartels mass-produce the drug.

Matina Stevis-Gridneff
Feb. 3, 2025, 8:33 a.m. ET

In response to U.S. tariffs, the Canadian province of Ontario has announced that it is cancelling a contract with Starlink, the satellite-internet service controlled by Elon Musk. The contract was worth 100 million Canadian dollars, about $68 million.

Containers in Port Newark, N.J. President Trump has threatened to impose tariffs on European goods coming to the United States.Ashley Gilbertson for The New York Times

European leaders warned on Monday that a trade war with the United States would destabilize economies on both sides of the Atlantic, after President Trump amplified his threat to levy tariffs on the European Union.

Many economic and political analysts had for weeks dismissed Mr. Trump’s threats to slap significant tariffs on important trading partners as bluster intended to force negotiation. But the threats look increasingly real, after the president signed executive orders to impose 25 percent tariffs on imports from Mexico and Canada and 10 percent tariffs on imports from China.

A glimpse of Detroit on Friday, across the river from Windsor, Ontario.Ian Willms for The New York Times

Not long after “Hockey Night in Canada” began on the big screens of a bar in Windsor, Ontario, fans in the arena could be heard delivering an icy message as the visiting team’s national anthem was played. They booed, long and loud.

The visiting team was the Minnesota Wild, the anthem was “The Star-Spangled Banner,” and the game in Ottawa on Saturday was taking place hours after President Trump imposed heavy trade tariffs on Canadian imports.

Jan. 24 Jan. 27 Jan. 28 

President Trump’s decision to impose sweeping tariffs on some of America’s largest trading partners sent shock waves through markets across the globe on Monday.

The dollar strengthened, oil prices rose and major stock indexes in the United States fell at the start of trading on Monday, though the S&P 500 and the technology-heavy Nasdaq later regained some of their losses on the news that tariffs on goods from Mexico are poised to be delayed by a month. The indexes had fallen roughly 1 percent by late morning.  Markets in Asia and Europe also tumbled.

An outlet mall in Laredo, Texas, near the border with Mexico.Gabriel V. Cárdenas for The New York Times

Groups representing American fuel manufacturers, home builders, retailers and alcohol producers responded to President Trump’s tariffs with a common concern: that businesses’ costs would increase, and consumers would end up paying the price.

Mr. Trump signed executive orders on Saturday imposing 25 percent tariffs on Canada and Mexico, with a partial carve out for Canadian energy and oil exports, and 10 percent tariffs on goods from China. The swift outcry from trade associations across a wide range of American industries underscored the broad nature of the tariffs, and the widespread prediction among businesses that they would have to pass the costs on to American families in the form of higher prices. Some economists also worry that companies might use the situation to raise prices more than necessary.

Freight engines owned by Canadian Pacific Kansas City Railway in Windsor, Canada, on Saturday.Ian Willms for The New York Times

The Canadian government on Sunday published a list with hundreds of American goods imported into Canada that it will slap a 25 percent tariff on come Tuesday. The move comes in retaliation to President Trump’s blanket 25 percent tariff on all Canadian goods imported into the United States. Tariffs on energy products like oil and electricity will be lower, at 10 percent.

The list amounts to 30 billion Canadian dollars’ worth of goods (about $20 billion), and will be updated to include thousands of more products in the next three weeks, as Canada escalates to a second stage of retaliation that will target another $86 billion worth of U.S. imports.

On his first day back in office, President Trump declared a national emergency at the southern border, which he expanded in his announcement of tariffs on Saturday.Eric Lee/The New York Times

President Trump said on Saturday that he would impose tariffs on Mexico, Canada and China using a decades-old law that gives the president sweeping economic powers during a national emergency.

“This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl,” Mr. Trump wrote in a social media post on Saturday. “We need to protect Americans, and it is my duty as President to ensure the safety of all.”

Trucks coming from Mexico at a border crossing in Laredo, Texas, on Saturday.Gabriel V. Cárdenas for The New York Times

President Trump’s tariffs target countries that are major suppliers of a wide range of goods to the United States. For American families, the likely result is higher prices nearly everywhere they turn — in grocery aisles, car dealerships, electronics stores and at the pump.

Mr. Trump on Saturday signed executive orders imposing tariffs on the country’s three largest trading partners. Tariffs against Canada and China are set to take effect at 12:01 a.m. Eastern time Tuesday, while those on Mexican goods have been delayed by a month. All goods imported from Canada and Mexico will be subject to a 25 percent tariff, except Canadian energy products, which will face a 10 percent tariff, according to the executive orders. The orders also imposed a 10 percent tariff on Chinese goods."

Trump Tariffs Live Updates: Mexico Says It Reached Deal to Delay Tariffs - The New York Times

No comments:

Post a Comment