A significant U-turn in the tariff drama unfolded Monday as the United States and Mexico consented to stop briefly the prepared trade levies for one month.
Both countries promised to take on crucial security issues, consisting of drug trafficking and arms smuggling, while resuming trade settlements.
Mexican President Claudia Sheinbaum verified the contract through social networks platform X at 10:21 a.m. ET.
She showed the implementation of 10,000 National Guard soldiers to Mexico’s northern border to fight fentanyl trafficking and a U.S. promise to suppress the circulation of high-powered weapons into Mexico.
Sheibaum stated: “Our groups will start working today on 2 fronts: security and trade.”
Twenty minutes later on, President Donald Trump revealed the offer on Fact Social, calling his discussion with Sheinbaum “really friendly.”
He worried Mexico’s dedication to surround security and stated top-level settlements will be led by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick Trump likewise showed his participation in talks, revealing optimism for a more comprehensive trade contract.
Read likewise: United States Production Self-confidence Tops Projections, Yet Rate Pressures Magnify, ‘Might End up being An Issue,’ Economic Expert States
Markets Rebound As Tariff Time Out Fuels Optimism
Financier belief enhanced dramatically following the statement.
The S&P 500– as tracked by the SPDR S&P 500 ETF Trust SPY— cut losses to 0.6%, rebounding from steeper decreases previously in the session as traders prepared for a possible de-escalation in trade stress.
The Mexican peso staged a remarkable turn-around, rising 1% after at first falling almost 2% over night.
The USD/MXN currency exchange rate dropped to 20.42, below a session high of 21.32, showing restored self-confidence in Mexico’s financial outlook.
The iShares MSCI Mexico ET F EWW rallied to 3%, reversing earlier session losses of approximately 2.5%.
All eyes now turn to Trump’s arranged call with Canadian Prime Minister Justin Trudeau at 3 p.m. ET, as markets hypothesize whether comparable tariff relief might be encompassed Canada.
Read Next:
Picture through Shutterstock.
Market News and Data gave you by Benzinga APIs