Trump Extends Trade Deal Negotiation with 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.

After what he described as a “very successful” phone call with Mexican President Claudia Sheinbaum, Trump noted that Mexico had previously been afforded some time to finalize an agreement. Initially, he set an August 1 deadline for countries to negotiate before a tariff increase was scheduled to take effect.

“We agreed to extend the exact same transaction for this brief period for 90 days,” Trump stated. This means Mexico will continue to be subject to a 25% tariff on fentanyl, a 25% duty on cars, and 50% tariffs on steel, aluminum, and copper. He mentioned this on his social media platform. Additionally, he indicated that Mexico has committed to immediately eliminate non-tariff trade barriers.

This decision marks a change from Trump’s previous stance; less than a day earlier, he declared that the Friday deadline would remain “standing strong and not extended.”

Historically, Mexico has been one of America’s largest trading partners. In 2024, U.S. exports to Mexico totaled $334 billion, while imports reached $550 billion, creating a trade deficit of $171 billion.

“We will discuss trade with Mexico over the next 90 days, aiming to sign an agreement within that time,” Trump said. “We are maintaining cooperation at the border related to security matters, including drugs and illegal immigration.”

In the meantime, increased tariffs will apply starting Friday for other major trading partners, such as Canada, India, and Brazil, until they reach agreements with the Trump administration.

The White House has not yet responded to requests for comments regarding this situation.