President Donald Trump announced on Thursday he’s extending the existing tariffs with Mexico, America’s largest trading partner, and he will pause higher tariffs that were set to go into effect Friday.
That means the status quo will continue, in which goods from Mexico are taxed at 25%, unless they are compliant with the United States-Mexico-Canada trade deal Trump signed under his first term. In those instances, goods won’t face any tariffs, barring certain 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 said 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.
Goods from Canada, America’s second-largest trading partner, have been tariffed at nearly identical rates as Mexico since April. However, it’s not clear if Trump has plans to speak to Canada’s Prime Minister Mark Carney ahead of a 12:01 a.m. ET deadline, after which goods from Canada could face 35% tariffs.
