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Weekly Report - 06 February 2025 (WR-25-05)

​MEXICO: Sheinbaum buoyant as US suspends tariffs

Mexico’s President Claudia Sheinbaum has successfully navigated what many have viewed as the biggest test of her presidency so far – for now. On 3 February Sheinbaum announced that US President Donald Trump had agreed to delay the implementation of 25% tariffs on Mexican imports by a month, following a call in which she pledged to boost border security. The agreement, which preceded a similar one between Trump and Canada’s Prime Minister Justin Trudeau, has granted Mexico some breathing space against tariffs that would have wreaked havoc on its economy. While the delay suggests Trump is using tariffs as a negotiating tactic aimed at winning concessions in the areas of illegal migration and drug trafficking, pressure will remain high on Mexico in the run-up to the new deadline. How Sheinbaum and her team navigate the next few weeks will be vital.

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