New tariff rates delayed as talks move forward
Former President Donald Trump has announced a 90-day extension of the current trade arrangement with Mexico, postponing the implementation of new tariffs. The decision comes amid ongoing global uncertainty surrounding upcoming trade agreements and rate changes.
Current tariff structure to remain in place
According to Trump, a “very successful” phone call with Mexican President Claudia Sheinbaum resulted in an agreement to maintain the existing terms. Under the extension, Mexico will continue to pay a 25% tariff on fentanyl, a 25% tariff on automobiles, and a 50% tariff on steel, aluminum, and copper.
Trump also stated that Mexico had agreed to “immediately terminate its Non Tariff Trade Barriers,” without providing specific examples. A previous report from the Office of the U.S. Trade Representative cited regulatory delays in product approvals—such as medical devices and pharmaceuticals—as potential obstacles for U.S. exports to Mexico.
Outlook for a long-term agreement
The U.S. aims to reach a new, comprehensive trade agreement with Mexico within the 90-day period or beyond. President Sheinbaum confirmed the extension in a short message, although she did not comment on changes to the non-tariff barriers mentioned by Trump.
This development comes just ahead of a broader deadline set by the Trump administration for renegotiating global trade deals. While the August 1 deadline was presented as firm, shifting timelines have created uncertainty for international partners and U.S. businesses, complicating planning efforts amid ongoing changes in trade policy.
