Mexican President Halts U.S. Tariffs for One Month

Mexican President: U.S. Tariffs to Be Delayed by One Month

The Mexican President has announced a temporary halt to the planned tariffs on imports from the United States, marking a significant shift in trade relations between the two nations. This agreement, reached directly with the U.S. President, reflects fluctuating economic policies and could potentially impact financial markets as investors recalibrate their strategies. The decision may influence the flow of goods and services across borders, affecting not only the United States but also Mexico's export economy. Market analysts will be closely watching the implications of this agreement, especially in the context of current global trade dynamics, which have been under scrutiny in recent months. In the backdrop of rising inflation and ongoing negotiations in other sectors, the ramifications of this decision could lead to a broader discourse on fiscal policy and international cooperation.

The suspension of tariffs, albeit for one month, comes as a relief to investors and businesses on both sides of the border. This temporary reprieve allows for further negotiations and potentially averts a full-blown trade war. However, the long-term effects of this decision remain uncertain, and market participants will continue to monitor the situation closely.

The Mexican President's announcement follows a series of escalating trade tensions between the United States and its major trading partners. The U.S. President has previously imposed tariffs on Canada, Mexico, and China, sending markets crashing and painting a doubtful picture for crypto markets. Bitcoin (BTC) slumped below $100,000 on Feb. 2, while altcoins like XRP (XRP) and Cardano’s ADA (ADA) are down over 17% and 22%, respectively, as of the time of writing. Trump's own World Liberty Financial portfolios suffered losses of over 20%, according to Spot on Chain.

The total market liquidation is estimated to be "at least around $8 billion - 10 billion," according to Bybit co-founder and CEO Ben Zhou. Responding to a Cointelegraph post on X, the crypto exchange executive said:

"Bybit’s 24hr liquidation alone was $2.1 billion."

On Feb. 1, Trump placed a 25% additional import tariff on Mexico and Canada and 10% on China. Markets went spiraling, with major stock indexes and crypto seeing losses across the board