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MEXICO CITY (AP) 鈥� Tens of thousands of people packed into Mexico鈥檚 City main plaza on Sunday to celebrate with President Claudia Sheinbaum a decision by the U.S. to postpone tariffs on many of the country鈥檚 goods.

The crowd clutched large Mexican flags and yelled, 鈥淢exico is to be respected!鈥� as they cheered on Sheinbaum.

鈥淔ortunately, dialogue and respect have prevailed,鈥� she told the crowd.

The celebration comes just days after U.S. President Donald Trump postponed 25% tariffs on many imports from Mexico for a month, saying Sheinbaum had made progress on drug smuggling and illegal immigration.

Sheinbaum had planned to announce any retaliatory measures on Sunday, but instead held a mass celebration.

While threats persist, the president said she was optimistic tariffs would not be applied to Mexico and that she would continue to act with a 鈥渃ool head鈥� in the face of Trump.

Among Sheinbaum’s supporters was Roberto Gonz谩lez, a 68-year-old computer scientist who raised a sign that read 鈥渨e are united Mexicans.”

鈥淭he unity of the country is very important,鈥� said Gonz谩lez, adding that is the only way Mexico would be able to 鈥渇ace one of the largest powers in the world.”

Also cheering on the president was Mariana Rivera, a 40-year-old social activist who held up a massive Mexican flag as high as her arms allowed.

Despite the dark clouds hanging over the country, the activist said she was convinced that 鈥渢he president will overcome everything.鈥�

Analysts say they don鈥檛 expect the jubilant ceremony to alleviate the climate of uncertainty that threatens new investments and the Mexican economy, but that it would help Sheinbaum consolidate internal support against Trump, who is setting the pace of bilateral relations with his powerful rhetoric.

鈥淭his is an event designed more for internal politics,鈥� said political scientist and academic Javier Rosiles Salas, stating that Sheinbaum will seek to strengthen her image and leadership with Sunday鈥檚 event.

Rosiles Salas told The Associated Press that despite concerns in Mexico about the economic impacts that a tariff war with the United States 鈥� its main trading partner and destination of more than 80% of Mexican exports 鈥� could unleash, the confrontation with Trump has been 鈥渧ery profitable for Claudia Sheinbaum鈥� and has allowed her to achieve popular support of over 60% five months into her term.

Although the 62-year-old president appears strong now, it is not clear whether her political support would weaken if the Mexican economy deteriorates because of tensions with the U.S.

For now, the projections of specialists and rating agencies are not favorable. Most analysts agree that if general tariffs are imposed, Mexico could face a contraction of more than 1% of the Gross Domestic Product.

A prolonged climate of uncertainty doesn鈥檛 favor Mexico, according to Samuel Ortiz Vel谩squez, professor of the Faculty of Economics at the National Autonomous University of Mexico.

After phone conversations with his counterparts in Mexico and Canada, Trump decided last Thursday to pause until April 2 the general tariffs for products that are under a trilateral trade agreement. In early February, Trump also suspended tariffs after Sheinbaum promised to send 10,000 national guards to the northern border to contain drug trafficking.

Despite the agreements, Trump鈥檚 decision on the 25% tariffs on steel and aluminum from Mexico and Canada, which are scheduled to come into effect on March 12, remains in limbo.