Trump Announces 90-Day Trade Agreement with Mexico
President Donald Trump has revealed a new 90-day trade agreement with Mexico after speaking with President Claudia Shainbaum, which extends tariffs on fentanyl, vehicles, and major metals. This move aligns with his administration’s ongoing efforts to target cartel-related financial institutions in Mexico.
On Thursday, Trump outlined the extension, which maintains tariffs on fentanyl at 25%, vehicles at 25%, and 50% on metals like steel, aluminum, and copper. In a post on a social media platform, he mentioned that the agreement includes new commitments regarding border security, drug trafficking, and illegal immigration, following a “very successful” conversation with Shainbaum.
Trump indicated that he feels a deeper understanding with Shainbaum, acknowledging the complexities in dealings with Mexico, especially due to border challenges and financial concerns.
The deal also demands that Mexico eliminate certain non-tariff trade barriers, which Trump referred to as excessive burdens. This announcement follows comments made by Treasury Secretary Scott Bescent at a recent policy event about intensifying sanctions against Mexican drug cartels and related financial institutions, specifically targeting Cibanco SA, Intercam Banco SA, and Vortex Casa de Bolsa.
Bescent emphasized their commitment to addressing the challenges posed by these entities. The Ministry of Finance is reportedly applying financial pressure to undermine cartel operations. The agreement comes as Mexico faces scrutiny over its connections with these institutions and crime within its government.
This temporary trade agreement allows for a 90-day window to finalize a more extensive trade deal. Trump confirmed the involvement of high-ranking officials in the discussions, including Vice President J.D. Vance, Secretary of State Marco Rubio, and Commerce Secretary Howard Rutnick.
Trump reiterated the importance of ongoing cooperation at the border concerning security issues, including drug trafficking and illegal immigration. The continuation of these tariffs underscores Trump’s “America First” trade policy, which has influenced various agreements with countries such as Japan, India, Canada, and the European Union—each featuring similar abrupt tariff implementations.
It’s unclear how Mexico will respond to the latest developments. Shainbaum has previously expressed her opposition to US sanctions on banks connected to cartels, citing insufficient evidence. Nonetheless, The National Banking Commission of Mexico has taken measures against Cibanco and Intercam Banco, leading to complications in their international operations.
