Washington Gives Mexico 90 Days to Finalize New Trade Agreement
US President Donald Trump has granted Mexico an additional 90 days to finalize a bilateral trade agreement before imposing a 30% tariff on all its imports, just as new tariffs are set to take effect.
This decision follows a phone call with Mexican President Claudia Sheinbaum, at a time when the original deadline set by Washington was about to expire on August 1. The negotiations between the two countries have been facing a challenging phase, causing concern in Mexican economic circles, especially as Mexico is the United States’ primary trading partner.
The temporary agreement reached between the two parties extends the existing framework of the North American Free Trade Agreement, maintaining a 25% tariff on products not covered by the deal, while steel products will remain subject to an additional 50% tariff.
In exchange, the Mexican president, as announced by Trump on his platform “Truth Social,” agreed to the immediate removal of certain non-tariff barriers. Sheinbaum described the agreement as “excellent,” believing it places her country in “a very good position” within the new global trading system.
Since his return to the White House, Trump has intensified pressure on Mexico, demanding broader cooperation to address the flows of fentanyl and migrants, as well as taking firm steps against cartel activities.
