Trump Extends Trade Agreement Deadline for Mexico

On Thursday morning, President Donald Trump announced that Mexico will have a 90-day extension to negotiate a trade deal with the United States. Following what he described as a “very successful” conversation with Mexican President Claudia Sheinbaum, Trump stated that Mexico had more time to reach an agreement than initially thought.

The president had set an August 1 deadline for countries to finalize trade negotiations before a significant increase in tariffs took effect, which he originally announced in April. “We agreed to extend the exact same transaction for the last short period for 90 days,” Trump explained. This means that Mexico will continue to face a 25% tariff on fentanyl, as well as 25% duties on cars and 50% on steel, aluminum, and copper.

Trump mentioned, “In addition, Mexico has agreed to immediately terminate the non-tariff trade barrier.” This change indicates a deviation from his position just a day prior, when he stated that the deadline was “standing strong and not extended.”

Mexico has long been one of America’s largest trading partners. In 2024, the U.S. exported goods worth $334 billion to Mexico while importing $550 billion, resulting in a trade deficit of $171 billion.

Trump added, “We will speak to Mexico over the next 90 days with the goal of signing a trade agreement within that time frame.” He emphasized ongoing cooperation at the border regarding security issues, including drug trafficking and illegal immigration.

Meanwhile, increased tariffs are set to take effect on Friday for other major U.S. trading partners like Canada, India, and Brazil, who have not reached a deal with the Trump administration. The White House did not respond immediately to requests for comments on this matter.