• US to prevent trading in high -powered weapons to Mexico.
• Trump to participate in negotiations with President Sheinbaum.
• Surprise message relieves some pressure on Mexico’s Peso.

Washington/Brussels: US President Donald Trump has been paving new tariffs on Mexico for a month after Mexico agreed to strengthen his northern border with 10,000 National Guard members to cushion the flow of illegal drugs, especially Fentanyl, he said Monday .

The agreement also includes a US obligation to act to prevent trade in high -ridden weapons to Mexico, said Mexican President Claudia Sheinbaum at X. The two leaders spoke per year. Phone Monday, just a few hours before US customs on Mexico, China and Canada were put into effect.

The two countries will use the month -long suspension to participate in further negotiations, Trump said.

“I look forward to participating in these negotiations, with President Sheinbaum when we try to achieve a ‘agreement’ between our two countries,” he wrote in truth social.

“” We have this month to work and convince each other that this is the best way forward, “Sheinbaum said at a press conference.

US shares that had fallen sharply on Monday morning for fear of an in -depth trade war, their losses paired after the message. Benchmark S&P 500 fell 0.7% around 10 pm. 10:45 ET (1545 GMT) and cut its losses on the day in half.

The surprise message also facilitated some of the pressure on Mexico’s Peso.

Trump said Monday he had spoken to Canadian Prime Minister Justin Trudeau and would do it again at 1 p.m. 15 ET (2000 GMT). The tariffs in Canada and China are still ready to take effect on Tuesday, and Canada has announced retaliatory gap.

A senior Canadian official told one New York Times Reporter that Ottawa is not optimistic, a similar postponement is in offing, said the reporter at X.

Trump spoke in Washington on Sunday after returning from his Mar-A-Lago property, indicating that the 27-nation European Union would be next in the firing line but did not say when.

“They don’t take our cars. They don’t take our agricultural products. They take almost nothing and we take everything from them,” he told journalists.

EU leaders who met at an informal summit in Brussels Monday said that Europe would be prepared to fight back if the United States imposes duty but also called for reason and negotiation.

When he arrived at the negotiations, French President Emmanuel Macron said, if the EU was attacked in its commercial interests, it would have to “make itself respected and thus respond”.

Chancellor Olaf Scholz from Germany said the block could respond if necessary with his own tariffs against the United States, but emphasized that it was better for the two to find agreement on trade.

Trump suggested that Britain, which left the EU in 2020, may have been spared for tariffs and said, “I think you can be prepared”.

The United States is the EU’s largest trade and investment partner. According to the eurostat data from 2023, the United States had a deficit of 155.8 billion euros ($ 161.6 billion) with the EU in trading in goods, offset by a profit of € 104 billion in services.

EU foreign policy chief Kaja Kallas said there were no winners in a trade war, and if one broke out between Europe and the United States, “then the one who laughs on the site is China.”

Markets swing

Economists say the Republican President’s plan to introduce 25% duties in Canada and Mexico and 10% customs duties in China would curb global growth and create prices higher for Americans.

Trump says they are needed to limit immigration and trafficking in drugs and spur domestic industries.

The reaction to the financial market Monday reflected concerns about the fallout from a trade war. Shares in Tokyo ended the day almost 3%, and Australia’s Benchmark – often a power of attorney for Chinese markets – fell 1.8%. The Chinese market in the mainland was closed to Lunar New Year’s holiday.

Around lunch time in Europe, Germany’s DAX index fell 1.8%, France’s CAC down 1.9%and Britain’s FTSE 100 down 1.5%.

Chinese yuan, Canadian dollar and Mexican peso all fell against a sky -high dollar. With Canada and Mexico the best sources of us. Import of crude oil, US oil prices CLC1 burst more than 1%, while gasoline Futures RBC1 increased almost 3%.

Trump’s tariffs cover almost half of all US imports and would require the United States to more than double its own production production to cover the gap – an inevitable task in the short term, Ing wrote analysts.

Other analysts said tariffs could throw Canada and Mexico into recession and trigger “stagflation” – high inflation, stagnant growth and elevated unemployment – at home.

In Europe, Economists at Deutsche Bank said they were currently entering into a 0.5% hit for gross domestic product (GDP) if Trump imposed 10% duty on the block.

National emergency

A fact sheet in the White House provided no details of what Canada, Mexico and China should do to win an postponement.

Trump promised to hold the sanctions in place until what he described as a national emergency over Fentanyl, a deadly opioid and illegal immigration to the United States ending.

China called Fentanyl America’s problem and said it would challenge customs duties in the World Trade Organization and take other countermeasures, but also left the door open to conversations.

Canada said it would take litigation under the relevant international bodies to challenge tariffs.

Car manufacturers would be particularly hard hit with new tariffs on vehicles built in Canada and Mexico, which burdens a huge regional supply chain where parts can cross borders several times before the final assembly. Ford UN and General Motors GM.N shares fell between 4% and 5%.