Puerto Vallarta, Mexico – Tariffs on Mexico and Canada were never a serious proposal, but the threats still move markets. The Mexican peso closed the day with notable gains against the U.S. dollar after President Donald Trump announced that a new 25% tariff on imports from Mexico and Canada would not take effect until April 2, the same tariff that was promised for February 1, 2025. Markets quickly reacted to the postponement, interpreting it as a temporary reprieve that buoyed investor confidence in the Mexican currency.
Speaking from the White House at his first Cabinet meeting on Wednesday, Trump confirmed that the revised timeline—originally scheduled for early February—will now begin on March 4 and extend through April 2, effectively granting Mexico and Canada an additional month for negotiations. This marks the second time the United States has delayed the imposition of tariffs on its two largest trading partners.
According to Gabriela Siller, director of economic and financial analysis at Grupo Base, the move supports the theory that tariffs are being used as leverage in ongoing talks. “Trump is seeking concessions from Mexico on migration, border security, combating organized crime, and trade with China,” Siller explained. The looming deadline pressures both Mexico and Canada to address U.S. demands before tariffs take effect.
The Mexican government, for its part, has already taken steps to mitigate the potential impact of the proposed tariffs. Marcelo Ebrard, Mexico’s Secretary of Economy, revealed on Tuesday that Mexican and U.S. officials began exchanging data to bolster negotiations and prevent the costly levies from being applied at American ports of entry.
Trump’s 25% tariff plan is intended to address what his administration calls pressing national security concerns, including drug trafficking and illegal migration. If no agreement is reached by April 2, the tariffs could significantly affect cross-border trade and place further strain on the region’s economic ties.
For now, investors appear cautiously optimistic. The peso’s appreciation reflects market hopes that diplomatic and economic cooperation will prevail, allowing the U.S., Mexico, and Canada to sidestep—or at least soften—the potentially damaging tariffs.
Puerto Vallarta, Mexico - Tariffs on Mexico and Canada were never a serious proposal, but the threats still move markets. The Mexican peso closed the day with notable gains against the U.S. dollar after President Donald Trump announced that a new 25% tariff on imports from Mexico and Canada would not take effect until April 2, the same tariff that was promised for February 1, 2025. Markets quickly reacted to the postponement, interpreting it as a temporary reprieve that buoyed investor confidence in the Mexican currency.
