Ahead of the expiration of the mutual tariff imposition suspension on Aug. 1, the United States decided to continue trade negotiations with Mexico for another 90 days.
U.S. President Donald Trump noted on the 31st (local time) after a phone call with Claudia Sheinbaum, the President of Mexico, that this decision was made.
President Trump said, "The currency was very successful, and we are increasingly understanding each other," adding, "Negotiations are complicated for Mexico due to border and asset issues compared to other countries."
President Trump explained that while the trade negotiation period has been extended, existing tariffs will be maintained for fentanyl-related products (25%), automobiles (25%), and steel, aluminum, and copper (50% each).
President Trump also emphasized that Mexico agreed to immediately eliminate non-tariff trade barriers. He further stated, "Cooperation on all border-related issues, including drug trafficking and illegal immigration, will continue."
From Mexico's perspective, it has gained some time. Earlier, President Trump said he would raise the tariff rate on all imports from Mexico that are not included in the United States-Mexico-Canada Agreement (USMCA) to 30% starting from the 1st.
President Sheinbaum said via X, "I had a very good currency with President Trump and secured 90 days to avoid the tariff increase scheduled for Aug. 1 and to reach an agreement."