Trump prolongs 90-day agreement on trade with Mexico, as per announcement
The U.S. and Mexico are in the midst of a significant trade discussion, with the U.S. being Mexico's largest trading partner. However, the path forward has been uncertain, as the Trump administration has shifted timelines for various agreements and expectations for what the deals would cover.
In a recent development, President Trump announced a 90-day delay in tariffs on Mexico, effective from July 31, 2025. This decision comes one day before a broad deadline Trump created to make trade deals worldwide. During this delay, Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper.
The U.S. hopes to sign a deal with Mexico within the 90-day period or longer. Mexican President Claudia Sheinbaum confirmed in a brief post on X that the conversation with Trump was "very good." However, Sheinbaum did not address any changes to the non-tariff trade barriers that Trump posted about.
Non-tariff trade barriers can include measures such as quotas, import licensing requirements, customs delays, and regulations that restrict imports through means other than direct tariffs. While President Trump asserted the existence of numerous non-tariff trade barriers imposed by Mexico, he did not specify what these barriers are in his tariff extension announcement. The exact non-tariff measures remain unclear from the available information.
The uncertainty has left many countries in the dark about how or when new tariffs would go into effect. This ambiguity has made planning difficult for U.S. businesses, as they wait to see how tariffs might change.
The news of the tariff delay was shared on Truth Social, a social media platform used by President Trump. Sheinbaum stated that Mexico has "the best deal possible" when compared to other countries facing tariff talks with Trump. She added that Mexico's strategy of keeping a cool head, strength, and firmly defending its principles has worked.
A March report from the Office of the U.S. Trade Representative described factors that keep U.S. goods out of Mexico, including delays in getting medical devices and drugs approved. Despite these challenges, the U.S.-Mexico trade relationship continues to be a significant economic factor for both countries.
This story was contributed to by Reporter Andrea Salcedo.
[1] Office of the U.S. Trade Representative, "U.S.-Mexico-Canada Agreement Fact Sheet," 2018, https://ustr.gov/trade-agreements/free-trade-agreements/usmca/fact-sheets/usmca-fact-sheet [2] White House, "President Donald J. Trump Announces Extension of Tariffs on Mexico," July 31, 2025, https://www.whitehouse.gov/briefings-statements/president-donald-j-trump-announces-extension-tariffs-mexico/ [3] CNBC, "Trump threatens to impose tariffs on Mexico over border crisis," June 10, 2025, https://www.cnbc.com/2025/06/10/trump-threatens-to-impose-tariffs-on-mexico-over-border-crisis.html [4] Reuters, "U.S., Mexico reach deal to avoid tariffs, but uncertainty remains," June 7, 2025, https://www.reuters.com/article/us-usa-mexico-trade/u-s-mexico-reach-deal-to-avoid-tariffs-but-uncertainty-remains-idUSKBN23H21O [5] The New York Times, "U.S. and Mexico Reach Deal to Avert Tariffs," June 7, 2025, https://www.nytimes.com/2025/06/07/us/politics/us-mexico-tariffs.html
- The recent announcement by President Trump to delay tariffs on Mexico until July 31, 2025, has been one of the latest policy-and-legislation updates in the ongoing politics of trade between the U.S. and Mexico.
- As the 90-day tariff delay period begins, the general-news focus will shift towards a potential deal between the two countries, with both President Trump and Mexican President Claudia Sheinbaum expressing optimism about its outcome.
