Tariff Tensions: U.S. Pauses Mexican Duties Amid Broader Trade Strain

The U.S. has paused new tariffs on Mexico for one month, boosting the Mexican peso, while retaining duties on Canada and China. This comes as Mexico agrees to reinforce its northern border. However, Canada expresses skepticism about a similar reprieve as retaliatory measures loom.

In a strategic pause, the United States halted the imposition of new tariffs on Mexico for one month. This decision came after Mexico committed to bolstering its northern border with 10,000 National Guard troops to curb illegal drug flows.

The announcement buoyed the Mexican peso, which rose by 0.95% against the dollar to 20.481, recovering from its near three-year low. Conversely, the dollar index declined by 0.639%, reaching 108.81. This followed its three-week high of 109.88 earlier in the day.

The U.S. maintains its stance on imposing 25% duties on Canada and 10% on China, set to commence this Tuesday, aimed at curbing immigration and narcotics trafficking. Canadian officials remain doubtful about a similar tariff delay.

(With inputs from agencies.)