Sheinbaum and Trump agreed to suspend the “tariff war” until April 2 when the commercial situation will be evaluated. The 25% tariff against Canada was also suspended.
By Pablo Meriguet
Mexican President Claudia Sheinbaum once again succeeded in postponing the imposition of 25% tariff on Mexican exports to the United States. While heavy tariffs on the US’ northern and southern neighbors was one of Trump’s first promises after being sworn in, the hard deadlines of first February 4 and now March 4, have been pushed back to April 2 following negotiations between the heads of state.
On March 6, on Truth Social, Trump posted: “After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement. This Agreement is until April 2nd. I did this as an accommodation, and out of respect for, President Sheinbaum.”
He added: “Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl. Thank you to President Sheinbaum for your hard work and cooperation!”
For her part, Sheinbaum responded positively to Trump’s message: “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 [each country’s] sovereignty.”
“We will continue to work together, particularly on migration and security issues, which include reducing the illegal crossing of fentanyl into the United States, as well as weapons into Mexico. As mentioned by President Trump, Mexico will not be required to pay tariffs on all those products within the [Canada-US-Mexico Agreement] USMCA. This agreement is until April 2, when the US will announce reciprocal tariffs for all countries.”
In her morning press conference on March 6, Sheinbaum emphasized, “We may not agree and talk about issues on which we disagree, but it must be emphasized that it was a very, very respectful call, as were the other three calls in which we have spoken. I presented to him the results we have had this month, results particularly related to the decrease in the crossing of fentanyl from Mexico into the United States.”
Later on March 6, Trump also announced that the 25% tariff on Canadian goods that are compliant with the USMCA would also be postponed to April.
Quick back pedal
Days prior, on March 3, Donald Trump had announced that he would impose a 25% tax on Mexican and Canadian products. “There is no margin left for Mexico or Canada…The tariffs, you know, are ready. They will go into effect tomorrow,” Trump said at a White House press conference.
Trump also implemented a 10% tariff on Chinese goods, which is in addition to the first 10% import tax increase that went into effect on February 4. In this way, Trump seeks to decrease imports from his three most important trading partners by implying a “moral” justification, according to which these three countries allegedly encourage the entry of illegal drugs and immigrants into the United States.
Following the announcement, the shares of several companies doing business in North America plummeted. Justin Trudeau announced that Canada will respond to the United States with “the same coin”: a 25% tariff on imports from the United States, with some provinces like Ontario, also announcing measures. The Chinese government, for its part, affirmed that if the United States wants a trade war with its country, it will have it “at any level.”
Notably, Sheinbaum’s strategy, however, was different: unlike China and Canada, she had decided to postpone the announcement of the measures her government would take in the face of increased tariffs. A few days ago, Sheinbaum wrote: “We must be calm in the face of the unilateral imposition of tariffs. It is time for unity and defense of sovereignty; I call Mexicans to the Zócalo this Sunday, March 9 at noon to inform of the actions we will take. Together we will move forward.”
Whether it was a pragmatic attitude to gain time or a strategy that sought to secure popular support, it seems that Sheinbaum’s “waiting” was beneficial to her government, as it allowed her to open a negotiation channel with Trump to suspend the tariff increase at least for a while.
What will happen after April 2?
Trump has announced his intention to place tariffs on all imports coming from countries that impose tariffs on US export products. In this sense, Sheinbaum explained, the United States will make a decision after April 2. In the particular case of Mexico, Sheinbaum explained that thanks to the free trade agreement between Mexico and the United States, there is no tariff on US goods.
In a press conference on March 6, the Mexican President said in this regard “In the case of Mexico, practically, everything is tariff-free: neither we charge them [US products] tariffs nor they charge us tariffs. So, when [Trump] suspends the decision until April 2, he is essentially putting Mexico in that framework of reciprocal tariffs. And in this month our teams will continue working, particularly the trade team…April 2 is a date that was not like the one from February to March, where only Canada, ourselves, and China were in that circumstance, but on April 2 everyone will be in the same circumstance. So, the objective is that Mexico, by not charging tariffs to the United States in this reciprocal relationship, will not charge us tariffs either,” Sheinbaum stated to the media.
