Progress on the Situation at Our Southern Border

What it means

Postpones the 25% tariffs on Mexican goods until March 4, 2025, originally set to begin February 4. This pause acknowledges Mexico's initial steps to address illegal migration and drug trafficking, while allowing time to assess if these actions are sufficient to resolve the border crisis.

Expected impact

• Temporary relief for businesses and consumers who would have faced higher costs on Mexican imports
• Diplomatic pressure maintained on Mexico to take more substantial action against illegal migration and drug trafficking
• Financial markets may respond positively to the delay, particularly for companies with Mexican supply chains
• Creates a timeline and framework for evaluating Mexico's progress on border security measures
• May strengthen U.S.-Mexico cooperation on shared border security challenges