On Thursday, July 31, 2025, President Donald Trump announced that the United States and Mexico have agreed to extend their existing trade arrangement for an additional 90 days, postponing the “Liberation Day” tariff deadline set for August 1.
The current terms maintain a 25% tariff on all Mexican goods as a response to fentanyl trafficking across the southern border, alongside a 25% tariff on Mexican-made cars and a 50% tariff on aluminum, copper, and steel.
Trump described a “very successful” phone call with Mexican President Claudia Sheinbaum, noting on Truth Social that they are “getting to know and understand each other.”
He added, “The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border.”
Mexico also committed to eliminating its non-tariff trade barriers, according to Trump.
Sheinbaum Confirms Agreement, Highlights Dialogue
In a statement on X, President Sheinbaum called the conversation “very good” and welcomed the 90-day tariff pause, attributing the outcome to “dialogue.”
This extension aligns Mexico with China, which is also pursuing a one-for-one trade deal with the US, with Beijing facing an August 12 deadline.
The agreement provides temporary relief for Mexico amid Trump’s broader push for reciprocal tariffs, which dozens of countries face starting at 12:01 a.m. ET on Friday unless deals are reached.
The US has recently secured framework trade agreements with the European Union, United Kingdom, Japan, Indonesia, Vietnam, the Philippines, and South Korea, reflecting a concerted effort to reshape global trade dynamics.
Canada Faces Tariff Hike and Political Tensions
Canada, however, has not yet reached a trade agreement with the US, and Trump signaled plans to increase Canada’s fentanyl-related tariff from 25% to 35% starting Friday.
Tensions escalated after Canadian Prime Minister Mark Carney announced Wednesday that Canada would support Palestinian statehood at the UN General Assembly in September, contingent on specific conditions.
Trump responded on Truth Social, stating, “Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard to us to make a Trade Deal with them. Oh’ Canada!!!”
