President Donald Trump introduced on Thursday he’s extending the present tariffs with Mexico, America’s largest buying and selling associate, and he’ll pause higher tariffs that had been set to go into impact Friday.
That means the established order will proceed, during which items from Mexico are taxed at 25%, except they’re compliant with the United States-Mexico-Canada commerce deal Trump signed beneath his first time period. In these cases, items received’t face any tariffs, barring sure sectoral tariffs in place.
“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,” Trump mentioned in a Truth Social post. “The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border. We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time.”
“We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer,” Trump wrote.
America has come to rely on Mexico for a variety of products, together with vehicles, electronics, footwear and attire. The nation overtook China to develop into America’s prime supply of imports in 2023 and has remained in that place since then.
The shift has occurred amidst a slew of higher tariffs Trump imposed on China throughout his first time period, which former President Joe Biden largely saved in place.
Mexico additionally imports a ton of products from the United States: It is No. 2 export market for the United States behind Canada.
Thus far, Mexico has not retaliated in opposition to any of the tariffs Trump has imposed. However, Sheinbaum has repeatedly vowed to slap higher tariffs on American items had been Trump to impose higher tariffs on Mexican items.
Goods from Canada, America’s second-largest buying and selling associate, have been tariffed at almost an identical charges as Mexico since April. However, it’s not clear if Trump has plans to converse to Canada’s Prime Minister Mark Carney forward of a 12:01 a.m. ET deadline, after which items from Canada may face 35% tariffs.
Dozens of different international locations face that very same risk, with tariff charges various by nation. Trump might not essentially wait till 12:01 a.m. ET, nonetheless. In the case of Brazil, he enacted a further 40% tariff on items from there on Wednesday, albeit with some key exclusions.
It’s unclear whether or not there shall be exclusions on sure items for the opposite international locations Trump has despatched letters to heads of state threatening to elevate tariffs.
Countries that haven’t obtained letters aren’t off the hook for higher tariffs both, given Trump’s vowed to improve the common tariff fee most international locations have confronted from 10% to between 15% to 20%.
This is a creating story and shall be up to date.