Trump Grants Mexico Another Reprieve: Delays New Tariffs for 90 Days, But Lack of a Legitimate Accord Prolongs Doubt Among Officials
In early August 2025, the United States, under President Trump, has implemented new tariff measures affecting key trading partners.
Canada now faces an increased tariff of 35% on imports into the U.S., effective from August 1, 2025. This tariff increase is due to a national emergency declaration related to illicit drug flows across the northern border. However, goods qualifying under the USMCA agreement remain exempt from this tariff, and evasion attempts via transshipment incur a 40% tariff.
Mexico and Canada are threatened with a 25% tariff on imports into the U.S., though USMCA goods retain preferential treatment. The precise effective rates for Mexico under the latest measures are less explicitly stated but reflect heightened tariff threats consistent with the northern border context.
The European Union is subject to new reciprocal tariffs ranging from 10% to 41%, set to take effect August 7, 2025, with some special rules applying specifically to the EU.
Brazil has imposed retaliatory tariffs on U.S.-origin goods, including a 50% tariff threatened from July 10, 2025. Effective tariffs already include a 10% ad valorem tariff since May 14, 2025, and prior periods with tariffs as high as 125%.
South Korea and Japan do not appear to have new reciprocal or retaliatory tariffs as of August 2025, suggesting tariffs remain at baseline or negotiated levels not covered here.
Switzerland is not specifically mentioned among the tariff updates in the results.
The most significant current tariffs include a 35% tariff on Canadian imports (except USMCA goods), threatened or active 25% tariffs on Mexican imports, reciprocal tariffs 10–41% on EU goods, and high retaliatory tariffs by Brazil on U.S. products.
The Sheinbaum administration in Mexico has presented the extension as a success, while Donald Trump has imposed a 35% tariff on Canada and a 50% tariff on Brazil.
The dynamic of the Donald Trump government continues to use tariffs as a measure to exert pressure in its negotiations, but as of now, no specific trade agreement has been mentioned for Mexico. Other territories have reached trade agreements with Washington, potentially reducing Mexico's competitive advantage. The extension of the deadline to reach a real trade agreement prolongs uncertainty.
- The political landscape, as affected by tariff policies, has led to an escalation in war-and-conflicts of trade among key global players, such as the 35% tariff imposed by President Trump on Canada and a 50% tariff on Brazil.
- Despite the ongoing political tensions, policy-and-legislation regarding trade remain a focus in general news, with the Sheinbaum administration in Mexico seeing the extension of the trade agreement negotiations as a success or uncertainty, depending on the perspective.
- Migration patterns may be influenced by the evolving economic landscape, as increased tariffs could potentially impact business interests, particularly in regions facing significant tariffs, such as Canada, Mexico, the European Union, and Brazil.
