Overview

• U.S. President Donald Trump postponed a 25% tariff on Mexican exports until April 2, citing respect for Mexican President Claudia Sheinbaum after productive negotiations.
• Sheinbaum has made significant concessions, including deploying additional troops to the U.S. border, targeting fentanyl production, and extraditing 29 cartel leaders to the U.S.
• The tariff delay has provided temporary relief, but uncertainty looms as Trump has not ruled out future tariffs or potential military action against cartels in Mexico.
• Mexico's economy, already facing a slowdown, is further strained by the trade tensions, with businesses stockpiling goods and foreign investment declining sharply in recent months.
• Sheinbaum's diplomatic approach, blending cooperation and firm assertions of sovereignty, has bolstered her domestic approval rating to 85%, positioning her as a key figure in managing U.S.-Mexico relations.