The U.S. and Mexico agreed to pause tariffs for one month after President Donald Trump and Mexican President Claudia Sheinbaum had a conversation to stave off a trade war.

Sheinbaum said that Mexico has agreed to send 10,000 members of the national guard to the border to prevent drug trafficking from Mexico. 

In return, the U.S. has committed to working to prevent the trafficking of weapons to Mexico, according to Sheinbaum, who characterized the two leaders’ conversation on Monday as good.

The U.S. markets started to rebound from a drop early Monday after the delay was announced. 

Trump, 78, was planning to slap 25 percent tariffs on imports from Canada and Mexico this week. 

He is also imposting 10 tariffs on China after saying for months he would take action if the countries did not do more to address fentanyl and undocumented immigrants coming across the U.S. border. 

His action excludes Canadian energy products which will instead face 10 percent tariffs. 

On Monday, Trump posted on Truth Social that the tariffs on Mexico would be delayed. 

 ‘I just spoke with President Claudia Sheinbaum of Mexico,’ he wrote. 

‘It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States,’ Trump said.

He wrote that the soldiers will be ‘specifically designated to stop the flow of fentanyl, and illegal migrants into our Country.’

‘We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico,’ he continued. 

Trump had threatened the tariffs after accusing the three countries of not doing enough to prevent the flow of fentanyl and illegal immigrants from crossing the border.

The White House said the tariffs will remain in place until the ‘crisis’ is over but did not elaborate.

In her remarks on Monday, Sheinbaum said that it was important for ‘humanitarian’ reasons for Mexico to help control the flow of fentanyl into the U.S. 

She signaled there were plans to deploy the troops immediately as tariffs were postponed.

As of Monday morning, Trump had also been in conversations with Canadian Prime Minister Justin Trudeau, but no agreement between the two countries had been reached.

Trump indicated that the two would speak again at 3pm ET on Monday. 

Canada, Mexico and China amounted to 40 percent of the imports to the U.S. last year. 

Foreign leaders had warned they will respond to Trump’s tariffs with retaliatory action. 

Canada ordered 25 percent tariffs on American imports starting Tuesday including on food, beverages, vehicle parts, furniture, clothing and other products. 

The first round of retaliatory tariffs on $30 billion in U.S. goods. Another round of tariffs on $125 billion in goods would begin in 21 days.

Some Canadian officials also plan to remove American liquor products from shelves. 

As the trade war rapidly escalates, some Republican lawmakers have started to express concerns that it will raise prices for Americans across the country. 

But they have yet to signal if they would move to stop Trump’s efforts.  

Former Republican Senate Leader Mitch McConnell (R-Ky.) slammed tariffs in an interview with 60 Minutes over the weekend. 

‘It will drive the cost of everything up,’ McConnell said. ‘In other words, it will be paid for by American consumers.’

‘I mean why would you want to get in a fight with your allies over this?’ McConnell asked.  

GOP Senator Chuck Grassley (R-Iowa) begged Trump to exempt potash from sweeping tariffs he posted on Monday.

Potash is a key component used in fertilizer and slapping tariffs on it would raise its price and hurt the U.S. farmers who need to import it for their use.

Grassley posted that U.S. family farmers get most of their potash from Canada, so he ‘plead’ with Trump to exempt it.

An increased cost in fertilizer would mean higher costs for farmers which could thus result in increased costs for people consumer their goods.

During Trump’s first term, his administration had to bail out farmers to the tune of billions of dollars after they were hurt by his trade policies which caused agricultural exports to fall.

‘Tariffs are simply taxes,’ wrote Senator Rand Paul (R-Ky.) in a post on X over the weekend. ‘Conservatives once united against new taxes. Taxing trade will mean less trade and higher prices.’

He argued that Republicans won the last election by complaining that Democrats’ policies led to higher prices. 

A new analysis on Monday found Trump’s tariffs on Canada, Mexico and China combined would cost American households an additional $1,200 a year, according to Peterson Institute for International Economics.