US suspends tariffs on Mexico in change of some commitments

The United States suspends tariffs on Mexico

On February 3, 2025, Mexican President Claudia Sheinbaum reached an agreement with U.S. President Donald Trump to suspend the new tariffs on Mexican products and the retaliatory measures outlined in “Plan B”. The two leaders reached this agreement during a phone call. where they also discussed key issues such as drug trafficking, irregular migration flows, and arms smuggling from the U.S. to Mexico. Read all the details here.

What’s Happening? Trade War in North America

On February 1, 2025, U.S. President Donald Trump fulfilled one of his campaign promises by imposing tariffs on imports from Mexico, Canada, and China. These tariffs, enacted under the the International Emergency Economic Powers Act (IEEPA), marked an unprecedented application, according os U.S. trade policy. According to experts, the measure aimed to pressure these countries into taking stronger action against fentanyl exports to the U.S. and illegal migration. The tariffs were set as follows:

Mexican Products

Canadian Products

Chinese Products

European Products

25%

25% for goods and 10% for energy products.

10%

Tentative tarrifs.

Agreements: Suspension of Tariffs

Following the conversation between Presidents Sheinbaum and Trump, both governments agreed to suspend the tariffs and potential trade reprisals for one month (until March 2025). President Trump conditioned the suspension on Mexico’s immediate action to combat drug trafficking and illegal migration into the U.S.

In response, the Mexican government committed to strengthening its northern border to curb fentanyl and other drug trafficking immediately. President Sheinbaum will deploy an additional 10,000 National Guard members to support border security. Additionally, Mexico agreed not to impose any trade reprisals or measures that could disrupt commerce.

Additionally, both governments agreed to establish a bilateral working group, including officials from the U.S. State, Commerce, and Treasury Departments, along with senior Mexican government representatives, to negotiate a long-term resolution.

Main Affected Products

The U.S. tariff increase on Mexican products would significantly impact industries that primarily export to the U.S., including:

What's next?

Monitoring the progress of Mexico’s border security measures and U.S.-Mexico negotiations remains crucial. While the temporary tariff suspension eases immediate trade tensions, the risk of reinstating tariffs still threatens North American commerce. However, the creation of a formal dialogue platform signals a potential resolution to this escalating trade dispute.

Do you need more information?

VTZ is a Mexican Law Firm with 50 years of experience, specialized in International Trade with a strong focus on antidumping investigations. Contact our key members from the antidumping investigation team today:

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