Trump and Sheinbaum Agree to Delay Tariff Increase
President Donald Trump has stated that he and Mexican President Claudia Sheinbaum have decided to delay the planned tariff increase by 90 days, allowing more time for negotiations that were supposed to wrap up by August 1st.
On Thursday, Trump took to his social media platform, Truth Social, to announce that he had a “very successful” discussion with Sheinbaum, noting the ongoing trade negotiations with her and other leaders around the world.
“I have just concluded a telephone conversation with the President of Mexico, Claudia Sheinbaum, which was very successful in that, more and more, we are getting to know and understand each other,” he mentioned.
He emphasized that the complexities of the deal with Mexico differ from those with other nations due to issues at the border. Trump detailed that they’ve extended the previous agreement, which includes a 25% tariff on fentanyl, automobiles, and a 50% tariff on steel, aluminum, and copper.
Additionally, Trump mentioned that Mexico will “immediately terminate its Non-Tariff Trade Barriers,” though he didn’t clarify what those barriers entail.
Following the conversation, Sheinbaum confirmed on X that the call with Trump went well and also acknowledged the extension of the tariff delay.
Earlier in the year, Trump implemented a 25% tariff on Mexican goods to encourage stronger efforts against illegal border crossings and drug trafficking. This measure excluded items covered under the United States-Mexico-Canada Agreement (USMCA), which was established during Trump’s first term.
He mentioned that this tariff would be distinct from all other Sectoral Tariffs and cautioned that goods adjusted to escape the tariffs would incur higher duties. Furthermore, he asserted that Mexican companies setting up in the U.S. wouldn’t be subject to these tariffs, promising a quick and efficient approval process.
“We will do everything possible to get approvals quickly, professionally, and routinely — in other words, in a matter of weeks,” Trump stated.
He also warned that any retaliatory tariffs from Mexico would trigger a proportional increase in U.S. tariffs.
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 30% that we charge,” he noted.
Currently, Mexico is the largest trading partner of the United States, with trade in goods in 2024 estimated to be around $839.9 billion.
The administration has also initiated preliminary trade agreements with countries like the Philippines, Japan, the United Kingdom, China, and Vietnam, while outlining a trade negotiation plan with India. They hope to finalize many more agreements before the August 1st deadline.
