President Donald Trump announced on Thursday a 90-day extension for trade negotiations with Mexico, delaying the implementation of a 30 percent tariff that was originally scheduled to take effect on Friday.
This decision follows a conversation with Mexican President Claudia Sheinbaum earlier in the day. Trump emphasized that Mexico will continue to be subject to existing tariffs, including a 25 percent duty on numerous goods not encompassed by the 2020 trade agreement.
"The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border," Trump shared on Truth Social. "We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time."
According to The Hill, Trump indicated that Mexico has committed to removing its nontariff barriers, although he did not provide detailed information on this development. The two nations are set to engage in further discussions over the next 90 days, with the aim of finalizing a more comprehensive trade agreement.
Trump also highlighted ongoing collaboration on border security issues, including drug trafficking and illegal immigration into the United States. "There will be continued cooperation on the Border as it relates to all aspects of Security, including Drugs, Drug Distribution, and Illegal Immigration into the United States," he wrote.
In March, the United States imposed a 25 percent tariff on Mexican goods, with Trump expressing dissatisfaction over the influx of Fentanyl into the country.
However, products covered under the 2020 trade agreement between the U.S., Canada, and Mexico were exempted. Earlier this month, Trump announced that Mexico would face a 30 percent tariff starting August 1, coinciding with the deadline for increased tariffs on numerous countries.
Mexico, along with other nations, is also subject to sector-specific tariffs, affecting industries such as automobiles, steel, and aluminum. Despite facing criticism from Democrats and others for retreating from tariff threats during his second term, Trump remains resolute in his approach. The acronym "TACO," standing for "Trump Always Chickens Out," has been used by detractors to mock his perceived indecisiveness.
Nevertheless, White House officials maintain that the President exercises flexibility to secure the most favorable deals for the nation. Trump reiterated his firm stance on the August 1 deadline, stating on Truth Social that it "stands strong."
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