U.S. President Donald Trump and Mexican President Claudia Sheinbaum say their planned tariffs are on hold for a month to give time for further negotiations
The Latest: Trump agrees to pause tariffs on Mexico for a monthBy The Associated PressThe Associated Press
U.S. President Donald Trump and Mexican President Claudia Sheinbaum said Monday that their planned tariffs were on hold for a month to give time for further negotiations. The statement was confirmed by the White House.
Trump’s tariffs against Canada and China are still slated to go into effect on Tuesday.
Here’s the latest:
Trump signs order to create sovereign wealth fund
President Donald Trump signed an executive order to create what he described as a sovereign wealth fund, a vehicle that could use proceeds from U.S. national resources to make investments. Saudi Arabia and Norway both have sovereign wealth funds for their energy revenues, among other nations.
Treasury Secretary Scott Bessent and Howard Lutnick, Trump’s nominee for commerce secretary, would be responsible for establishing the fund over the next 12 months.
“I think it’s going to create value and be of great strategic importance,” Bessent told reporters at the signing.
Canadians doubt that Trump will agree to pause his tariffs
With U.S. President Donald Trump set to tariff imports from Canada on Tuesday, a senior Canadian official said the country is not confident it can avoid the looming tariffs as Mexico did with a one-month pause for negotiations. That’s because it feels like Trump’s goal posts shift more for Canada than for Mexico. The official spoke on condition of anonymity in order to discuss private conversations.
Trump is slated to speak at 3 p.m. EST with Canadian Prime Minister Justin Trudeau. The two leaders spoke Monday morning and Trump told reporters gathered in the Oval Office on Monday that Canada had not been treating the United States well.
—Robert Gillies
Trump praises Elon Musk for ‘finding tremendous waste’ in the federal government
“We’re trying to shrink government,” the president said in the Oval Office on Monday.
Trump added that Musk “has some very good ideas” but emphasized that he has the final say over what happens.
“Elon can’t do and won’t do anything without our approval,” he said. “He reports in.”
Trump hits pause on tariffing Mexico, but imports from Canada and China could still face new taxes
President Donald Trump is pausing his tariffs planned for Mexico by one month, giving time for negotiations as Mexican President Claudia Sheinbaum said she would deploy 10,000 members of her country’s national guard to the shared border to stop drug trafficking.
But as of now, the taxes on imports from Canada and China are still scheduled to go forward on Tuesday. Trump said he plans to speak at 3 p.m. EST with Canadian Prime Minister Justin Trudeau. Their previous conversation on Monday morning led to a social media post by Trump that attacked Canada for not allowing U.S. banks as he continues to list grievances.
Both Canada and Mexico have counter tariffs prepared should Trump impose the taxes.
The tariffs carry the risk of higher inflation and slower economic growth. But Trump has said he also plans to threaten tariffs against countries in the European Union.
China renews threat to retaliate against US tariffs
U.S. President Donald Trump’s trade war with Canada, Mexico and China is ramping up over the production and importation of the opiate fentanyl, along with trade surpluses and illegal border crossings by migrants from across the globe.
China, meanwhile, has reiterated its threat to take “necessary countermeasures to defend its legitimate rights and interests” following Trump’s decision to impose 10% tariffs on China for allegedly doing too little to stem the production of precursor chemicals for fentanyl.
▶ Read more about what Beijing says about it
Import taxes still in place for Canada and China
Trump’s tariffs against Canada and China are still slated to go into effect on Tuesday. He posted on social media that he spoke Monday morning with Canadian Prime Minister Justin Trudeau and would “be speaking to him again at 3:00 P.M.”
Wall Street is paring its losses after Mexico announces tariffs delay
Wall Street is paring its losses after Mexico’s president said the United States will delay its tariffs on Mexican imports by a month, easing some of the worries about a potential trade war.
The S&P 500 was down 0.7% in Monday morning trading after being down as much as 1.9% earlier. The Dow Jones Industrial Average was down 99 points, or 0.2%, as of 11 a.m. Eastern time, and the Nasdaq composite was 1% lower.
▶Read more about the stock market today.
Mexico to send National Guard to its northern border
“Mexico will reinforce the northern border with 10,000 members of the National Guard immediately, to stop drug trafficking from Mexico to the United States, in particular fentanyl,” Mexican President Claudia Sheinbaum said in a post on the social platform X.
She added that the U.S. had committed to “work to stop the trafficking of high powered weapons to Mexico.”
US and Mexico agree to delay tariffs
Mexico and the United States have agreed to suspend the threatened tariffs for one month as Mexico immediately deploys 10,000 members of its National Guard to their shared border to battle drug trafficking, especially fentanyl.
President Claudia Sheinbaum said that Mexico had requested a call with Trump since Friday. The U.S. president called at 8 a.m. (Mexico) on Monday. He and Sheinbaum spoke for more than half an hour.
The U.S. committed to doing more to stop the trafficking of guns into Mexico and both countries have established teams to continue discussing security and trade issues going forward, Sheinbaum said.
Trump asked how long she wanted to pause it and she suggested forever, but he said Mexico could have a month to show results.
