President Trump said Thursday he would allow another 90 days for trade talks with Mexico, punting a 30 percent tariff that was set to go into effect Friday.
Trump spoke Thursday morning with Mexican President Claudia Sheinbaum ahead of the announcement. Trump said Mexico would continue to pay existing tariffs, which includes a 25 percent duty on many goods not covered under a 2020 trade agreement.
“The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border,” he posted Thursday 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.”
Trump said as part of ongoing talks, Mexico had agreed to eliminate its nontariff barriers, though he did not offer specifics. The two sides will continue negotiations over the next 90 days, the president noted, with the hopes of reaching a wider trade deal.
“There will be continued cooperation on the Border as it relates to all aspects of Security, including Drugs, Drug Distribution, and Illegal Immigration into the United States,” he wrote.
The U.S. in March imposed a 25 percent tariff on Mexican goods, with Trump citing frustration over the flow of fentanyl into the U.S. The president later exempted products covered under the 2020 trade agreement struck between the U.S., Canada and Mexico.
Trump earlier this month announced Mexico would face a 30 percent tariff beginning Aug. 1, which was the deadline for when dozens of countries were set to face heightened tariffs.
Mexico and other nations are also facing sectoral tariffs, which include duties on automobiles and steel and aluminum.
Trump has faced criticism and mockery from Democrats and others for backing down on tariff threats during his second term so far, leading to the acronym “TACO” meaning “Trump Always Chickens Out.” White House officials have argued the president has flexibility when making the best deal for the country.
Trump posted to Truth Social Wednesday that his Aug. 1 deadline “stands strong.”
