Tens of thousands of people celebrated in Mexico City after news broke that U.S. President Donald Trump had delayed tariffs on Mexican imports. The crowd gathered in the central plaza, waving Mexican flags and chanting, "Mexico deserves respect!" What started as an event to announce possible retaliatory actions quickly turned into a celebration of a diplomatic win for Mexico.
During the gathering, President Claudia Sheinbaum addressed the crowd, declaring, "Dialogue and respect have triumphed." She expressed hope that the tariffs would not be imposed and promised to keep a calm demeanor in discussions with Trump. Sheinbaum also noted that they had previously agreed on reciprocal tariffs in April. There was a feeling of optimism about the future of U.S.-Mexico relations among the attendees. Drug trafficking remains a critical issue, as Mexican cartels have been labeled as terrorist organizations by Trump, which could lead to potential military actions. The U.S. is Mexico's main trading partner, making negotiations critical.
Dialogue and respect have triumphed, fostering optimism for U.S.-Mexico relations, President Sheinbaum declared.
The tariff postponement came just days before the celebration. Trump had credited Sheinbaum for progress on issues like drug trafficking and immigration. The new deadline for any potential tariffs was set for April 2, 2025. This decision was part of a broader agreement between the two nations. Federal laws can override state laws due to the Supremacy Clause, illustrating how international agreements may also influence domestic policies.
The event also strengthened Sheinbaum's support back home. With over 60% of the population backing her, confrontations with Trump seemed to work in her favor. However, there remains uncertainty about long-term political support, making this celebration a strategic move for her administration.
On the economic front, the U.S. is Mexico's main trading partner, accounting for 80% of Mexico's exports. Analysts warned that imposing tariffs could cause a GDP decline of more than 1%. Recent data showed a 0.6% shrink in GDP, marking the first economic contraction in three years. Businesses were already reacting by slowing down future investments and stockpiling goods.
Despite the celebration, ongoing challenges loom. Trump has labeled Mexican drug cartels as terrorist organizations, creating fears of military action. The potential for future clashes with the U.S. remains a concern for Mexico.
