Trump Tariff Policy in Mexico Successfully Stopped? This is the explanation!

Bittime - President Donald Trump's planned tariff policy against Mexico has sparked a lot of attention, but the latest news reveals that this policy has been temporarily stopped. 

This decision had an unexpected positive impact on the market, including Bitcoin and other crypto assets, which experienced a surge after experiencing a sharp decline. So, what actually happens with this tariff policy, and how does it affect the market?

Postponement of Implementation of Trump's Tariffs on Mexico

The decision to postpone the implementation of tariffs against Mexico was taken in order to reach a broader agreement. Trump plans to continue trade negotiations with Mexico, which also include talks about smuggling firearms into the country. 

Mexico's President, Claudia Sheinbaum, confirmed via social media that the deal also includes a commitment by the United States to address the robust issue of firearms trafficking smuggled into Mexico.

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The two leaders spoke by telephone on Monday, hours before the tariffs were scheduled to take effect. Trump expressed optimism about continuing negotiations that will be led by US officials, such as Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, along with high-level representatives from Mexico.

Impact of Tariffs on Global Markets

Before this policy was postponed, Trump had previously announced the implementation of a 25% tariff on imported goods from Mexico and Canada, as well as a 10% tariff on goods from China. This step has raised concerns in the global market, especially regarding the impact of high tariffs on various important goods.

Sheinbaum had threatened to impose retaliatory tariffs on goods from the US, although he had not yet revealed the specific amount of tariffs that would be imposed. 

In reaction to this tariff policy, Canadian Prime Minister Justin Trudeau announced that Canada would impose a 25% tariff on $155 billion worth of US goods. Meanwhile, China also plans to challenge US tariff policies at the World Trade Organization (WTO).

Crypto Market Reaction

The decision to postpone the implementation of these tariffs has had a positive impact on the crypto market. After experiencing high volatility and many large-scale liquidations, the prices of Bitcoin and other crypto assets are now starting to creep up. According to CoinGlass data, more than $2 billion in liquidated positions was recorded in the last 24 hours, although Bybit CEO Ben Zhou revealed that the figure was likely higher than recorded.

This phenomenon shows how tensions in international trade can affect the crypto market, which is highly sensitive to global economic developments and important political decisions. This tariff delay provided a breath of fresh air for the market, and investors began to see opportunities again.

What Does This Mean for the Global Economy?

The delay in Trump's tariff policy against Mexico not only impacts asset markets such as Bitcoin, but also has the potential to improve trade relations between the United States and Mexico. This decision opens up space for the two countries to continue negotiations that could produce a more favorable agreement, especially regarding controlling firearms trade and smuggling.

Although further details regarding this agreement have not been disclosed, this step shows the importance of trade diplomacy in maintaining global economic stability. Crypto markets, in particular, will continue to monitor these developments, as international trade tensions can directly impact price movements and market sentiment.

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Conclusion

The decision to delay the implementation of Trump's tariffs on Mexico had a positive impact on the market, especially in the crypto world, which felt a surge in prices after previously experiencing a sharp decline. 

Now, Mexico and the United States are focused on negotiations which are expected to produce a better agreement for both countries, especially in dealing with the issue of firearms trade and smuggling. For global markets, this decision shows how important trade policy is in maintaining economic stability and investment.

FAQ 

What caused Trump's delay in tariffs on Mexico?

The tariff delay comes as part of a broader agreement between the United States and Mexico to continue trade negotiations. Trump and Mexican President Claudia Sheinbaum agreed to resolve the issue of firearms trafficking and smuggling.

How will the tariff delay impact the crypto market?

Crypto markets, including Bitcoin, felt a surge in prices after the tariff delay was announced. This has had a positive impact on markets that previously experienced high volatility and massive liquidations.

Does this agreement apply to other countries besides Mexico?

This tariff delay only applies to Mexico. However, similar policies also affected other countries, such as Canada and China, which responded to US tariff policies by imposing retaliatory tariffs.

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Reference

Coincident, Trump Tariffs on Mexico Halted, Rapidly Shifting Trade War Landscape, accessed 4 February 2025.

Author: MF