Trump pauses tariffs on Mexico and Canada, but not China

Reuters was first to report on Mexican President Claudia Sheinbaum’s statement last week announcing the pause on sweeping U.S. tariffs that were scheduled to come into effect within 24 hours.

Prior to the announcement the Mexican peso was trading at 21.08 per USD, down 1.9% from the previous day’s close. Following Reuters snaps, the peso had erased those losses and had strengthened to 20.64 per USD.

Why it matters

U.S. President Donald Trump suspended his threat of steep tariffs on Mexico, agreeing to a 30-day pause in return for concessions on border and crime enforcement, Sheinbaum said last Monday. The prospect of a tit-for-tat trade war between the top trade partners had hammered the peso currency and Mexican shares and prompted doomsday forecasts for Latin America’s second largest economy, with news of the one-month pause coming as a breath of fresh air for markets and investors.