Trump Extends Mexico Trade Talks by 90 Days, Keeps 25% Tariff

President Donald Trump has extended negotiations with Mexico by 90 days, maintaining a 25% tariff on automobiles and a 50% tariff on steel, aluminum, and copper. The decision, announced via Trump’s social media platform, followed a phone call with Mexican President Claudia Sheinbaum, whom Trump described as “very successful in that, more and more, we are getting to know and understand each other.” The extension offers clarity on Trump’s trade policy and avoids an immediate increase in tariffs on Mexican goods, which had been threatened at 30% earlier in July [1].

Sheinbaum expressed optimism over the outcome, noting that Mexico secured “the best deal possible” and avoided the tariff hike that was set to take effect on Friday. Trump reiterated that Mexico would continue to face the current 25% tariff, but emphasized the need for the country to eliminate its “Non-Tariff Trade Barriers,” though specific measures were not outlined [2].

The delay has added to the growing uncertainty surrounding Trump’s global trade agenda, with previous deadlines already extended multiple times. The original August 1 deadline for finalizing trade agreements with key partners has now been pushed, leaving businesses and governments scrambling to adjust. The lack of a formal meeting between Trump and Sheinbaum further complicates the timeline, as the pair agreed to reconvene closer to the new deadline [3].

While Trump has reached agreements with countries such as South Korea, the European Union, Japan, and others, the U.S.-Mexico relationship remains a focal point due to the scale of trade between the two nations. The U.S. Census Bureau reported a $171.5 billion trade deficit with Mexico in 2024, a significant increase from $63.3 billion in 2016. Trump has framed the tariffs as a tool to address both this imbalance and the fentanyl crisis, linking trade policy to domestic law enforcement objectives [4].

A March 2025 report from the U.S. Trade Representative highlighted issues such as delays in approving medical devices and pharmaceuticals as potential non-tariff barriers that Mexico agreed to address. However, without concrete details on how these will be resolved, the trade relationship remains in flux. Meanwhile, other countries such as Norway and Switzerland remain in limbo, uncertain whether a deal will be reached before the next deadline [5].

The extended timeline provides both the U.S. and Mexico with an opportunity to refine their positions and build a more permanent agreement. However, it also underscores the challenges of navigating an unpredictable trade environment. As Trump’s global trade deadlines continue to shift, the outcome of the U.S.-Mexico discussions could serve as a model—or a cautionary tale—for future negotiations [6].

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Sources:

[1] [Trump extends Mexico trade deadline for 90 days](https://www.npr.org/2025/07/31/g-s1-80414/trump-mexico-trade-deal-delay)

[2] [Live updates: Steve Witkoff and Mike Huckabee to inspect ...](https://www.nbcnews.com/politics/trump-administration/live-blog/trump-trade-tariff-deadline-canada-russia-gaza-immigration-live-update-rcna221299)

[3] [Trump's trade deadline ticks down to zero, sending tariffs ...](https://www.cnn.com/business/live-news/trade-deadline-tariffs-trump-deals)

[4] [Trump extends Mexico's 25% tariffs for 90 days as talks ...](https://www.reddit.com/r/worldnews/comments/1me457i/trump_extends_mexicos_25_tariffs_for_90_days_as/)

[5] [Trump tariff updates: Mexico deal extended by 90 days](https://www.bbc.com/news/live/cpqvdxzwv22t)

[6] [Trump extends Mexico negotiations by 90 days, keeps 25 ...](https://fortune.com/2025/07/31/trump-mexico-tariffs-25-percent-90-day/)