(4th LD) Trump agrees to pause tariffs on Mexico for 1 month for negotiations
(ATTN: ADDS photo, China’s reaction in paras 19-21)
By Song Sang-ho
WASHINGTON, Feb. 3 (Yonhap) — U.S. President Donald Trump agreed Monday to “immediately” pause anticipated tariffs on Mexico for one month for negotiations between the two countries, as Mexican President Claudia Sheinbaum pledged to deploy 10,000 Mexican soldiers to prevent drug trafficking.
Trump and Sheinbaum reached the agreement in a call, as a 25 percent tariff on all Mexican imports had been set to go into effect on Tuesday amid fears that Trump’s use of tariffs to achieve foreign policy goals would result in higher U.S. consumer prices, supply chain disruptions and other repercussions for the world economy.
On Saturday, Trump announced sweeping tariffs on Mexico, Canada and China in an anticipated move that he justified as an effort to fend off the inflow of illegal migrants and drugs, including fentanyl. Ottawa and Beijing warned of counteractions.
“It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican soldiers on the border separating Mexico and the United States. These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our country,” Trump wrote on Truth Social.
“We further agreed to immediately pause the anticipated tariffs for a one month period,” he added.
This photo, released by the Associated Press, shows U.S. President Donald Trump speaking to reporters after arriving at Joint Base Andrews in Maryland on Feb. 2, 2025.
During the one-month period, Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent and Secretary of Commerce Howard Lutnick will engage in negotiations with high-level Mexican representatives, Trump said.
“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two countries,” he said.
In a separate social media post, Sheinbaum also announced the agreement, saying that the two countries will work together on security and trade.
Mexican President Claudia Sheinbaum speaks during her daily press conference at the National Palace in Mexico City on Feb. 3, 2025 in this photo released by AFP. (Yonhap)
Trump has announced plans for 25 percent tariffs on Mexican and Canadian imports with a carve-out for Canadian energy products to be taxed at a 10 percent rate, and for a 10 percent tariff on goods from China.
He has also warned that the U.S. would escalate the rates in the event of retaliation from the targeted countries.
Amid growing concerns over the potential ramifications of tariffs, Trump acknowledged on social media Sunday that there might be “some pain,” but it will be “worth the price that must be paid.”
During a press availability in the afternoon, Trump said that the U.S. will be speaking to Chinese officials “over the next 24 hours.” He warned that if the two sides cannot make a deal, U.S. tariffs on China will be “very substantial.”
“We’ll have some good meetings with China. We have meetings planned, and we’ll see what happens,” he told reporters in the Oval Office.
“But that was just an opening salvo. If we can’t make a deal with China, then the tariffs will be very very substantial,” he added, indicating that the tariffs could go beyond 10 percent.
Trump also touched on China’s involvement in the Panama Canal.
“Now, we had another big thing, speaking of China. China’s involved with the Panama Canal,” he said. “They won’t be for long, and that’s the way it has to be.”
He added, “We are going to get something very strong, or we are going to take it back and China will be dealt with.”
Trump has expressed his intent to retake the strategically crucial canal that Panama took control of in 1999, claiming that American ships have been “severely overcharged” and “not fairly treated,” and that China is operating the canal.
In a press conference, Chinese Ambassador to the U.N. Fu Cong reaffirmed China’s opposition to what he called an “unwarranted” increase in U.S. tariffs, saying that there is “no winner in a trade war.”
“We do believe that this is in violation of WTO rules. That’s why China is filing a complaint at the WTO,” he said, referring to the World Trade Organization. “We may be forced to take countermeasures.”
He also claimed that Beijing has the “most stringent” regulations on fentanyl as he urged the U.S. to look at the “demand side of fentanyl rather than shifting the blame onto others.”
This photo, released by the Associated Press, shows China’s Ambassador to the U.N. Fu Cong speaking during a Security Council meeting at U.N. headquarters on Jan. 20, 2025.
At 3 p.m. Monday, Trump plans to speak again with Canadian Prime Minister Justin Trudeau, whose government announced a plan to impose 25 percent tariffs on C$155 billion worth of U.S. goods in retaliation against what it called “unjustified and unreasonable” tariffs unveiled by the U.S.
Earlier in the day, Trump took issue with a lack of access for U.S. banks to enter the Canadian market.
“Canada doesn’t even allow U.S. Banks to open or do business there,” he wrote on Truth Social. “What’s that all about? Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the U.S. from drugs pouring through the borders of Mexico and Canada.”
South Korea has been carefully watching what appears to be an emerging trade war as hundreds of South Korean businesses are operating in Mexico amid fears that U.S. tariffs on Mexico, if effectuated, will have an adverse impact on their businesses.
sshluck@yna.co.kr
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