In a statement on social media Trump said, “After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay tariffs on anything that falls under the [United States-Mexico-Canada Agreement]. This Agreement is until April 2.”

He said he and Sheinbaum have a very good relationship are working cooperatively on border security and trying to stop Fentanyl from cross the Mexican border into the United States.

Sheinbaum said during a press conference Thursday, “In February alone, the reduction in fentanyl seizures on the United States side of the border with Mexico was 41.5%. [Trump] didn’t know about this graph until I sent it to him.”

Mexican goods covered under the pact Trump signed in his first term won’t have to pay the 25% tariffs the U.S. president wanted to enact. Left unsaid was whether the tariff exemption would also be granted to Canada, also a party to that trade agreement.

The UMCA lets trade flow between the North American nations without tariffs as long as they abide by the agreement provisions.

One of them is that products need to be either made entirely in North America or be substantially transformed in North America.

Thursday’s move granting Mexico the tariff exemption comes on the heels of Trump’s decision to delay auto tariffs on Canada and Mexico.

According to the Anderson Economic Group, the auto tariffs could have hiked the price on North American-made cars sold in the United States by $4,000 to $10,000.

In a sign of how much the tariffs would have hurt the U.S. economy, the Dow Jones industrial average was up by some 500 points in trading Wednesday on the news that autos would be exempt.

But the Dow was down more than 600 points at mid-afternoon Thursday on skittishness about future tariffs.