WASHINGTON — President Trump announced Thursday the US and Mexico have agreed to extend their current trade arrangement for another 90 days, saving the southern neighbor from Trump’s impending Aug. 1 “Liberation Day” deadline.
Washington will continue to charge a 25% tariff on all Mexican goods as punishment for fentanyl crossing the southern border, along with a 25% tariff on cars made in Mexico and a 50% rate on the country’s aluminum, copper and steel.
Trump said that he and his Mexican counterpart, Claudia Sheinbaum, agreed to the further pause following a “very successful” phone call, with the US president saying on Truth Social the two are “getting to know and understand each other.”
Trump announced an extension to Mexico’s current tariffs Thursday. AP“The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border,” Trump added.
“Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many.”
In a separate statement on X, Sheinbaum described the call as “very good” and celebrated no tariff hikes for another 90 days at least, saying the agreement was the fruit of “dialogue.”
The announcement means Mexico joins China on a separate path to broker a one-for-one trade deal with the US.
Dozens of nations are facing the imposition of reciprocal tariffs at 12:01 a.m. ET Friday if no agreement is struck, with Beijing facing a deadline of Aug. 12.
The US has announced framework agreements in recent weeks with several significant trading partners, including the European Union, United Kingdom, Japan, Indonesia, Vietnam, the Philippines and South Korea.
The announcement came after Trump’s call with Mexico’s President Claudia Sheinbaum. Getty Images
The extension will save Mexico from its current August 1 deadline. AFP via Getty ImagesCanada has yet to strike a deal with the US and Trump has indicated he will up Ottawa’s current fentanyl retribution tariff to 35% from its current 25% starting Friday.
Canadian Prime Minister Mark Carney further vexed the president late Wednesday by announcing plans to recognize a Palestinian state at the UN General Assembly in September, provided certain conditions are met.
“Wow! Canada has just announced that it is backing statehood for Palestine,” Trump wrote on Truth Social. “That will make it very hard to us to make a Trade Deal with them. Oh’ Canada!!!”
