President Donald Trump has decided to stop a proposed 25% tariff on goods entering the United States for a month after an agreement with Mexican President Claudia Shinbam.
Decision comes after Shinbam Committed To curb the smuggling of illegal drugs, especially to deploy 10,000 National Guard soldiers along the US-Maxico border to prevent the flow of migrants in the US, and to prevent migrants flow in the US
Trump announced two days after the tariffs were imposed on Mexico, Canada and China. These tariffs were part of a comprehensive strategy to pressure mexico to take strong action on border security and drug trafficking.
The agreement provides a temporary stagnation to allow both nations to continue the conditions of negotiating. Trump indicated that US authorities, including state secretary Marco Rubio, Treasury Scott Besant’s secretary and Commerce Secretary Howard Lutynik, will lead talks with high-level representatives from Mexico.
In a social media post, Trump Express Celebrate about reaching a deal, given that one month window will allow both sides to detect potential solutions.
This stagnation has been seen as a diplomatic win for both sides, an emphasis on a mutual commitment to overcome respect for sovereignty and border security challenges.
Crypto and financial market reacts
Tariff stagnation has had a positive impact on financial markets. American stock, which reduced the day amidst the possibility of a growing trade war, quickly withdraws most of its damage after the announcement.
The S&P 500 index, which was 0.7% a day before, retaliated because investors reacted to temporary relief in business stress. Mexican peso, which was under pressure due to tariff danger, also showed symptoms of stabilization.
Bitcoin (BTC) fell on the evening of 2 February to $ 91178, but has since rebel up to 98000. The other cryptocurrency followed the suit, with some plmeting more than 20%.
However, this temporary suspension of tariffs is not without risk. While the decision provides short -term relief for markets, experts remain alert. Tariffs on other countries including Canada and China, are still ready to be effective in the coming days, raise concerns about potential retracted measures.
