Politics

Trump Delays Mexico Tariffs, Extends Trade Negotiations for 90 Days

By Jake Beardslee · July 31, 2025

President Donald Trump has announced a 90-day extension for trade negotiations with Mexico, postponing the implementation of a 30 percent tariff that had been set to begin Friday.

The decision came after a Thursday morning call with Mexican President Claudia Sheinbaum. While the higher tariffs are paused, Mexico will continue paying existing duties, including a 25 percent tariff on many goods not covered under the 2020 United States-Mexico-Canada Agreement (USMCA).

“The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border,” Trump wrote on Truth Social. “We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper.”

Trump also claimed Mexico agreed to eliminate its non-tariff barriers, though he did not provide details. Talks will continue with the goal of reaching a broader trade agreement.

The U.S. imposed a 25 percent tariff on Mexican goods in March, citing the flow of fentanyl into the country. Goods covered under USMCA were exempt. In early July, Trump announced that a 30 percent tariff would take effect on August 1 for Mexico and dozens of other countries.

In addition to general tariffs, Mexico faces sector-specific duties on items like automobiles, steel, and aluminum.

Critics have accused Trump of repeatedly retreating from his trade threats, coining the acronym “TACO” to mean “Trump Always Chickens Out.” However, the White House has defended the president’s flexibility in securing the best deals for the U.S.

Trump had posted Wednesday that the August 1 tariff deadline “stands strong,” before changing course the next day.