President Donald Trump announces a 90-day extension on new tariffs to Mexico, which were set to take effect on August 1. The announcement was made by Trump via Truth Social, where the U.S. president reported a “very successful telephone conversation” with Mexican President Claudia Sheinbaum.
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For her part, Claudia Sheinbaum, the president of Mexico, reported the following regarding the tariff extension: “We had a very good call with the President of the United States, Donald Trump. We avoided the tariff increase announced for tomorrow and achieved 90 days to build a long-term agreement through dialogue. “I was accompanied by Juan Ramón de la Fuente, Secretary of Foreign Affairs; Marcelo Ebrard, Secretary of Economy; and Roberto Velasco, Undersecretary for North America,” the Mexican president stated.
What does the 90-day extension on U.S. tariffs to Mexico mean?
According to the statement published by Trump on his social network, both governments agreed to extend for 90 days the same deal that was previously in place, under which Mexico will continue paying:
- A 25% tariff on fentanyl
- A 25% tariff on automobiles
- A 50% tariff on steel, aluminum, and copper
In addition, the U.S. president stated that Mexico agreed to immediately eliminate its non-tariff trade barriers, of which, he said, “there were many.”
“We have agreed to extend, for a 90-day period, the same deal we had during 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,” Trump wrote.
Donald Trump emphasized that the phone call with Claudia Sheinbaum was “very successful” and that there is increasing understanding between the two governments.
“The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border,” Trump explained.
The president stressed that negotiations with Mexico will continue over the next 90 days, with the goal of signing a definitive trade agreement within that time frame — although he left open the possibility for a longer timeline.
Who was present in the decision to postpone the tariffs?
Trump detailed that key officials from his cabinet were involved in the announcement:
- Vice President JD Vance
- Secretary of the Treasury Scott Bessent
- Secretary of State Marco Rubio
- Secretary of Commerce Howard Lutnick
- U.S. Trade Representative and Ambassador Jamieson Greer
- Chief of Staff Susie Wiles
- National Security Advisor and Deputy Chief of Staff for Policy Stephen Miller
What is the background of this tariff dispute?
Weeks ago, Trump had sent an official letter to President Claudia Sheinbaum announcing the imposition of 30% tariffs on all Mexican products, in addition to existing tariffs on strategic sectors.
“We will charge Mexico a 30 percent tariff on Mexican products sent to the United States, separate from all sector-specific tariffs. Products that are transshipped to evade higher tariffs will be subject to that higher tariff,” stated the letter.
According to Trump, the reason was the alleged lack of action by the Mexican government to curb migrant flows and fentanyl trafficking into the United States. While he acknowledged some cooperation from Mexico, he said it was still insufficient to dismantle criminal networks.
What conditions does the U.S. impose during this pause?
In addition to the tariffs already established on key sectors, the Trump administration demanded that Mexico provide full cooperation on border security, especially in three areas:
- Combatting drug trafficking
- Distribution of illegal substances
- Irregular migration into the United States
“There will be continued cooperation on the border in all aspects of security, including drugs, drug distribution, and illegal immigration into the United States,” the U.S. president stated.
