Mexico, US agree to pause tariffs on FTA-covered goods

MEXICO CITY -- Mexican President Claudia Sheinbaum and her US counterpart Donald Trump have agreed on another month-long pause to a 25 percent tariff on Mexican goods that comply with the rules of origin of the North American free trade agreement known as the United States-Mexico-Canada Agreement (USMCA), Sheinbaum said Thursday.

Sheinbaum said on social platform X that during her Thursday morning telephone conversation with Trump, which she described as "respectful," they agreed those products will be exempt from the tariff until April 2.

"As President Trump mentions, Mexico will not be required to pay tariffs on all those products within the USMCA," she said in the message.

"Many thanks to President Donald Trump. We had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results, within the framework of respect for our sovereignties," said the Mexican president.

The two leaders agreed to continue working together on cross-border issues, including trying to stop the flow of fentanyl into the United States and the smuggling of weapons into Mexico, the Mexican president said in her post.

USMCA is a trade agreement negotiated, signed, and ultimately enacted during President Donald Trump's first term to replace the former North American Free Trade Agreement (NAFTA).

On Feb 1, Trump signed an executive order imposing a 25 percent tariff on products imported from Mexico and Canada, with a 10 percent tariff increase on Canadian energy products. On Feb 3, Trump announced a 30-day delay in implementing the tariffs on both countries and continued negotiations. According to this decision, the relevant tariff measures took effect on March 4.

On Thursday, Trump took to his social media platform Truth Social to announce the temporary suspension of the 25 percent tariffs on Mexico.

This marks the second time the tariffs on Mexican goods have been paused for a month.