President Donald Trump and Mexican President Claudia Sheinbaum have agreed to delay tariffs on each other's countries for one month following discussions on border security. The decision, announced Monday (February 3), involves deploying 10,000 Mexican troops to the U.S.-Mexico border to curb illegal immigration and fentanyl trafficking. In return, the U.S. will work to reduce arms smuggling into Mexico.

The delay comes after President Trump imposed 25% tariffs on Mexico and Canada and 10% on China over the weekend, sparking retaliatory tariffs from these countries. Mexico is a significant trading partner for Texas, and the tariffs have raised concerns among economists and the business community about potential economic impacts.

The tariffs were intended to pressure Mexico and Canada to address illegal border crossings. President Trump stated that the pause would allow for negotiations led by Secretary of State Marco Rubio and Secretary of Commerce nominee Howard Lutnick, who awaits Senate confirmation.

Mexican President Sheinbaum expressed optimism about the agreement, emphasizing respect and equality between the two nations. The New York Times reported that the agreement also includes U.S. assistance in controlling gun trafficking into Mexico.

While Mexico secured a temporary reprieve, Canada remains in a challenging position, with retaliatory tariffs set to take effect. President Trump plans further discussions with Canadian Prime Minister Justin Trudeau.

The tariffs have sparked fears of a trade war, affecting global markets and potentially increasing consumer prices in the U.S.