In a major victory for President Donald Trump, the anti-tariff “Liberation Day” began with significant momentum as one of the U.S.’s strongest Middle Eastern allies announced it would immediately suspend all tariffs on American goods. The decision by Israeli Prime Minister Benjamin Netanyahu, revealed late Tuesday, is aimed at strengthening ties with the U.S. amid President Trump’s commitment to fully supporting the eradication of Hamas terrorists in Gaza.
He added that doing so would reduce the cost of living for the people of Israel. “In addition to the economic benefits for the economy and citizens of Israel, this move will allow us to further strengthen the alliance and ties between Israel and the United States,” Netanyahu said in a statement. “We will continue to work to remove barriers and tariffs and to reinforce our special relationship with the United States.”
Meanwhile, Mexican President Claudia Sheinbaum has officially backed down, telling the nation’s press that she has no plans to escalate a trade war with the United States if Trump follows through on his promise to impose new tariffs on imports from Mexico. Speaking to the media on Tuesday from the National Palace in Mexico City, Sheinbaum stated that she would not pursue “retaliatory” tariffs if Trump imposes new duties on Mexican-made goods, including vehicles, agricultural products, manufacturing items, and others.
She promised on Thursday to “announce a comprehensive program, not a tit-for-tat on tariffs.” Instead, her administration will pursue “what’s best for Mexico.” The Mexican government does not believe in “an eye for an eye” and “a tooth for a tooth” approach “because that always leads to a bad situation,” she added. The Reuters report follows Trump’s decision to impose a 25% tariff on aluminum and steel imports from Mexico, prompting some auto manufacturers, such as Honda, to announce plans to begin assembling vehicles at their existing U.S. plants.
Sheinbaum warned that the longstanding North American free trade agreement is in “doubt” as a result of Trump’s plans. “If the USMCA says ‘no tariffs’ and there are tariffs, obviously the USMCA is not being complied with,” she said, according to Mexico News Daily.
Much of the dispute revolves around whether Mexico is effectively addressing human smuggling and fentanyl trafficking along the U.S. southern border. While illegal crossings have reached their lowest point in nearly 60 years, the number of U.S. citizens killed by the deadly synthetic opioid has continued to rise, though at a slower pace, since 2022. In response to the Trump administration’s request to house more migrants being deported, Sheinbaum supported the idea of “humanitarian rescues” through Mexican detention centers.
