Mexico's move to stop the trafficking of fentanyl by deploying 10,000 officers on the northern border prompted the United States (US) to agree to postpone tariffs for 30 days.
At the same time, Mexican President Claudia Sheinbaum revealed that the US also agreed to work to prevent the smuggling of high-powered weapons into Mexico.
High tariffs often lead to increased costs for goods, which are usually borne by consumers, resulting in higher prices for goods.
Experts believe that the implementation of tariffs of 25% on Mexico and Canada and 10% on China could have a negative impact on global trade and the US economy.
Canada and Mexico are expected to experience an economic recession while the US is expected to face stagflation, a state of rising inflation and unstable growth.
Financial markets are seen to have reacted negatively, with major indexes such as the S&P 500 down 1.7%.
Ford and General Motors saw shares fall by up to 5%, due to concerns that tariffs would disrupt cross-border supply chains, increasing production costs.
