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The United States has announced that it will delay a planned increase in tariffs on Mexican imports for 90 days.
Some shit you should know before you read: If you’re unaware, Mexico is one of America’s most critical trading partners, serving as both its largest source of imports and second-largest export market. In 2023, the United States imported approximately $475 billion worth of goods from Mexico, with top imports including automobiles, auto parts, electronics, machinery, crude oil, and agricultural products like fruits and vegetables. Mexico imported around $320 billion in goods from the US, primarily purchasing refined petroleum, machinery, electrical equipment, plastics, and grains such as corn and soybeans. Earlier this year, Trump imposed 25% tariffs on a wide range of Mexican products due to issues with the border and concerns related to fentanyl flowing into the US from Mexico.
What’s going on now: In a notable development, President Trump confirmed a 90-day extension on current tariff levels for Mexican imports, postponing a planned increase that was set to take effect tomorrow. In a statement, Trump wrote, “We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper.” He added, “The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border.”
As part of the agreement, Mexico also committed to eliminating what Trump described as “numerous Non Tariff Trade Barriers,” although neither side detailed exactly which barriers would be lifted.
The announcement came after a phone call between Trump and Mexican President Claudia Sheinbaum, which both leaders described as positive and productive. Trump said the conversation was “very successful in that, more and more, we are getting to know and understand each other,” and confirmed that top officials, including Vice President JD Vance and Secretary of State Marco Rubio, were present during the call.
President Sheinbaum echoed Trump’s tone of cooperation, stating on X, “We avoided the tariff increase announced for tomorrow and achieved 90 days to build a long-term agreement through dialogue.” She confirmed that the discussion was held early Thursday morning and was attended by senior Mexican officials, including Foreign Minister Juan Ramón de la Fuente and Economy Secretary Marcelo Ebrard. At her morning press conference, Sheinbaum reiterated that the call helped avert an immediate escalation in trade tensions.
