US, Mexico Agree To Delay Donald Trump Tariffs; Crypto Market Rebounds

The United States and Mexico have agreed to delay new Donald Trump tariffs on Mexican goods for one month. The announcement came after a conversation between U.S. President Donald Trump and Mexican President Claudia Sheinbaum. As part of the agreement, Mexico will deploy 10,000 soldiers to its northern border to prevent drug trafficking. Meanwhile, financial markets reacted to the ongoing trade tensions, with global stocks declining and the cryptocurrency market showing signs of recovery as Bitcoin price soared above $101,000.

US, Mexico, Canada Reach Temporary Trade Agreement

President Trump had announced a 25% tariff on Mexican and Canadian goods, along with a 10% tariff on Chinese imports. The Donald Trump tariffs were scheduled to take effect on Tuesday. However, following discussions between the two leaders, the White House confirmed that the tariffs on Mexico and Canada would be postponed for one month.

Trump said on social media that the U.S. and Mexico would engage in negotiations during this period. “We further agreed to immediately pause the anticipated tariffs for a one-month period during which we will have negotiations,” Trump wrote. The discussions will involve senior officials from both countries, including U.S. Secretary of State Marco Rubio and Mexican trade representatives.

Sheinbaum also addressed the agreement on social media, saying the talks were conducted with “great respect for our relationship and sovereignty.” She confirmed that Mexico would strengthen its border security while the U.S. committed to stopping the flow of high-powered weapons into Mexico.

Stock Markets Decline Amid Trade War Concerns

Global financial markets reacted to the trade developments, with stocks in the U.S., Europe, and Asia experiencing declines. Wall Street opened lower, with the S&P 500 dropping 1.5% as investors assessed the risk of a prolonged trade dispute.

In Canada, the government responded by announcing retaliatory tariffs of 25% on American goods. The list of affected imports is expected to expand in the coming weeks. China also stated that it would take “countermeasures” and bring a legal case against the U.S. at the World Trade Organization.

Trump suggested that additional tariffs on the European Union could be introduced soon. Speaking to the BBC, he said, “Tariffs will definitely happen with the European Union,” though no official announcement has been made. European leaders warned that such measures could further destabilize global trade.

Mexico to Deploy Troops to Strengthen Border Security

As part of the agreement, Mexico and Canada will send 10,000 soldiers to its northern border to address drug trafficking, particularly fentanyl. The decision is intended to meet one of the U.S. administration’s primary concerns about security along the border.

Sheinbaum stated that Mexico’s forces would begin operations immediately. “Our teams will begin work today on two areas: security and trade,” she said. The U.S. also agreed to increase efforts to prevent firearms from reaching Mexican criminal organizations.

Concurrently in Canada, Prime Minister Justin Trudeau too confirmed the same intention on stance against fentanyl saying

“Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.”

The decision to deploy troops is similar to previous agreements between Mexico and the U.S. during Trump’s first term, when Mexico stationed forces to curb migration flows. The move is expected to play a role in upcoming negotiations on long-term trade policies between the two nations.

Cryptocurrency Market Shows Signs of Recovery

Despite the decline in traditional markets, the cryptocurrency market experienced a rebound. Bitcoin price, which had dropped in recent days, rose to $101,237 with a 24-hour trading volume of over $116 billion. Ethereum price, which had been down earlier, traded at $2,714.79.

Other cryptocurrencies, including XRP price rose to $2.77 up 3% and Dogecoin up 1.84% to $0.2801 after experiencing sharp declines of over 10%. Analysts suggest that investors may be shifting focus to digital assets amid uncertainty in traditional financial markets.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.