President Donald Trump says he plans to impose tariffs on Canada and Mexico starting next Tuesday, in addition to doubling the 10% universal tariff charged on imports from China, Reuters reported. Posting on Truth Social on Thursday, Trump said that illicit drugs such as fentanyl are being smuggled into the United States at “unacceptable levels" and that import taxes would force other countries to crackdown on the trafficking.

President Donald Trump said he expected tariffs planned to take effect on Canada and Mexico to go ahead next month following an initial delay to allow the countries more time to address his concerns over border security, Bloomberg News reported. “The tariffs are going forward on time, on schedule,” Trump said Monday from the White House during a joint press conference with French President Emmanuel Macron. Trump was asked if the tariffs, which he delayed until March 4, would go into effect.

Mexico’s annual inflation accelerated roughly in line with economists’ forecasts in early February, holding near the central bank’s estimates and keeping chances of a sixth straight interest rate cut in play, Bloomberg News reported. Official data released Monday showed consumer prices rose 3.74% in the first two weeks of the month from the year before, just below the 3.77% median estimate of analysts surveyed by Bloomberg and up from the 3.48% reading in late January.

Mexico’s economy posted the biggest quarterly contraction since 2021, with domestic demand and private investment faltering just as tensions with its top trade partner mount, Bloomberg News reported. Gross domestic product fell 0.6% in the three months through December, matching the 0.6% decline reported in preliminary data released by the country’s national statistics institute Jan. 30. From a year ago, GDP expanded 0.5%, less than the flash reading of 0.6%, according to the final data published Friday.

Mexico will start consultations with the US government to explain why it considers the steel and aluminum tariffs ordered by President Donald Trump as “not justified,” said Economy Minister Marcelo Ebrard, Bloomberg News reported. First, Mexico imports more steel and aluminum from the US than it exports to that country, Ebrard argued, and also the Latin American country is the main destination for US exports of steel products, “representing 52% of its global exports at the end of 2024,” he added.

Mexico's inflationary environment is expected to allow policymakers to keep cutting the benchmark interest rate, the head of the Bank of Mexico told Reuters, as the fight to bring down inflation has entered a new phase, Reuters reported. Banxico, as the Mexican central bank is known, cut the key rate by 50 basis points to 9.50% on Thursday, double the 25-basis-point cuts it had made since it began lowering borrowing costs from a record high of 11.25% in March 2024. "Our work is not over.

Mexico’s central bank will likely double the pace of monetary policy easing Thursday, delivering a half-point rate cut with inflation back in the target range, growth slowing and tariffs delayed, Bloomberg News reported. Banco de Mexico, known as Banxico, will cut its key rate by 50 basis points to 9.5%, according to 22 of 26 economists surveyed by Bloomberg. Three analysts see a fifth-straight 25 basis-point reduction and one expects no change.

President Donald Trump on Monday agreed to a 30-day pause on his tariff threats against Mexico and Canada as America’s two largest trading partners took steps to appease his concerns about border security and drug trafficking, the Associated Press reported. The pauses provide a cool-down period after a tumultuous few days that put North America on the cusp of a trade war that risked crushing economic growth, causing prices to soar and ending two of the United States’ most critical partnerships.

Mexican President Claudia Sheinbaum said on Monday that tariffs with the United States are on hold for a month after a conversation with President Donald Trump in which she committed to putting more law enforcement on the U.S. border to stop the flow of drugs, Reuters reported. "Our teams will start working today in two areas: security and commerce," Sheinbaum wrote in a post on X that announced the pause in tariffs. Trump ordered the 25% tariffs on all Mexican goods over the weekend, with Mexico saying it would respond with tariffs of its own without detailing on what products.

Mexico’s annual inflation slowed slightly more than expected in early January, keeping in play chances of a bigger interest rate cut at the central bank’s next policy meeting, Bloomberg News reported. Official data released Thursday showed consumer prices rose 3.69% in the first two weeks of the month from the year before. Core inflation, which excludes volatile items such a food and fuel, came in at 3.72%, slightly above the 3.69% median estimate. Banxico, as the central bank is known, cut its key rate by quarter point for a fourth straight meeting to 10% last month.