Tariffs to be delayed by a month, says Mexican President

Mexico's President Claudia Sheinbaum said on Feb 3 that the US would delay a proposed 25 per cent tariff on all goods coming into the country from Mexico for one month, after Mexico agreed to ramp up security at its border.

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US President Donald Trump had said earlier that he would discuss the punishing tariffs he has levied on Canada and Mexico with both countries on Feb 3.

Speaking to reporters after he flew back to Washington on the evening of Feb 2 from a weekend in Florida, Mr Trump said he was "speaking with Prime Minister (Justin) Trudeau tomorrow morning, and I'm also speaking with Mexico tomorrow morning".

"I don't expect anything very dramatic," he added.

Mr Trump has also hit China with a 10 per cent tariff in addition to levies already in place.

China, Mexico and Canada are the United States' top three trade partners, and all have vowed to retaliate when the tariffs take effect on Feb 4.

Analysts expect the trade war to slow US growth and increase prices, at least in the short term, something the President had resisted acknowledging after frustration over rising costs was seen as a major factor in his 2024 election win.

Seeking to limit a spike in fuel prices, Mr Trump has put the levy on energy imports from Canada at only 10 per cent.

The President has cited illegal immigration and the trafficking of the deadly opioid fentanyl as reasons for the "emergency" measures.

But on Feb 2, he also expressed general outrage at trade deficits, which he has long viewed as signs of unfair treatment against the US.