Donald Trump made the decision about Mexico after speaking with Mexico's President Claudia Sheinbaum, he writes on his own platform Truth Social.
He motivates the decision, among other things, by having a very good relationship with Claudia Sheinbaum.
After the announcement about postponed tariffs on Thursday, Sheinbaum said that Mexico will review the country's import tariffs on Chinese goods.
Later on Thursday, the announcement about postponing tariffs on Canada also came.
The tariffs on goods within USMCA – the North American free trade agreement negotiated with Canada and Mexico during Trump's previous term – are now postponed until April 2.
According to the White House, around 50 percent of imports from Mexico and 38 percent of imports from Canada are covered by the USMCA agreement, reports CNBC.
Measures against fentanyl
Earlier in the day, US Trade Minister Howard Lutnick had already flagged that Donald Trump is likely to postpone tariffs on Mexico, but also on Canada, on many more product groups.
The Trump administration – which has motivated the tariffs by wanting to see neighboring countries take action to stop the flow of migrants and fentanyl to the USA – is currently negotiating with Canada and Mexico.
Howard Lutnick also said that both countries have offered to make enormous efforts against fentanyl during the talks.
Tariffs of 25 percent were introduced earlier in the week. But on Wednesday, Trump postponed those affecting the automotive giants Stellantis, Ford, and General Motors until April 2.
China and the EU are also in Trump's sights regarding additional punitive tariffs.
The unilateral introduction against Mexico and Canada was made in violation of the USMCA agreement and has raised great concern on markets around the world due to fears of a full-scale international trade war.
Not thinking of withdrawing
Canada's Prime Minister Justin Trudeau has previously clarified that he does not intend to withdraw his package of countermeasures in exchange for individual American exceptions.
Analysts have spoken about Trump's willingness to compromise, which is likely to come to life if Canada and Mexico establish the same tariffs against the rest of the world as the USA – so that goods and components from other countries do not enter the American economy via neighboring countries.
Moreover, many have pointed out that the introduction hits American business hard.
The New York Stock Exchange has had a tough week with falling prices on two out of three trading days and is also falling sharply on Thursday – despite Trump's tariff decision.
