Mexican President Claudia Sheinbaum speaks during her daily news conference.
President Donald Trump said on July 31 that he will not raise U.S. tariffs on Mexican goods for 90 days following a “very successful” call with Mexican President Claudia Sheinbaum.
“More and more, we are getting to know and understand each other,” Trump said on Truth Social.
“The complexities of a deal with Mexico are somewhat different than other nations because of both the problems, and assets, of the border.”
Following the current arrangement, he said, Mexico will continue to be subjected to a 50 percent levy on aluminum, copper, and steel and a 25 percent tariff on automobiles.
The president also said that Mexico had “agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many.” He did not point to specific trade restrictions that would be removed.
Trump and senior administration officials have regularly cited concerns surrounding fentanyl trafficking and trade imbalances. But Mexican leaders have spotlighted their efforts to reduce the flow of fentanyl entering the United States.
U.S. Vice President JD Vance, U.S. Treasury Secretary Scott Bessent, U.S. Secretary of State Marco Rubio, and other White House officials joined the call. Sheinbaum’s team also participated in the call.
Sheinbaum also confirmed her call with Trump.
“We avoided the tariff increase announced for [Aug. 1] and secured 90 days to build a long-term agreement through dialogue,” the Mexican leader said on X.
Trump had previously threatened to increase the blanket tariff rate on Mexican goods entering the United States to 30 percent from the current level of 25 percent.
According to the U.S. Trade Representative’s Office, the U.S. goods deficit with Mexico was $171.8 billion in 2024, a 12.7 percent increase from the previous year.
Aug. 1 Deadline
The Aug. 1 deadline is nearing, and Trump has confirmed that the date “will not be extended.”
But while higher U.S. tariff rates are set to go into effect, Bessent said this does not mean that other countries cannot negotiate better terms.
Appearing at a policy event with conservative publication Breitbart News, Bessent urged companies, investors, and U.S. trading partners “not to panic” as nations “can still do a deal” after the Aug. 1 deadline.
“You’re just going to go back to your April 2 reciprocal tariff level,” he said, noting that these higher import duties could be applied to any market for any length of time, be it “for three days” or “for three months.”
“You can continue negotiating. I would expect that it’s going to be a busy August.”
This week, the president and his team announced various trade developments.
Trump said on July 30 that India would face a 25 percent tariff on goods, plus an extra import tax because of its Russian oil purchases.
“India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high,” the president said on Truth Social.
“They have the most strenuous and obnoxious non-monetary Trade Barriers of any Country.”
In 2024, the U.S. goods trade deficit rose by 5.4 percent to $45.7 billion.
South Korea reached a last-minute agreement with the United States.
“I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea,” Trump wrote in a July 30 Truth Social post.
The Asian economic powerhouse will face a new tariff rate of 15 percent, avoiding a 25 percent levy.
In exchange, Seoul agreed to zero percent tariffs on a range of U.S. products, including automobiles and agricultural items. South Korea will also invest $350 billion in U.S. projects and buy $100 billion worth of U.S. energy, particularly liquefied natural gas.
The U.S. goods trade deficit with South Korea was nearly $66 billion in 2024, up by more than 29 percent from 2023.
Earlier in the week, Bessent and U.S. Trade Representative Jamieson Greer met with their Chinese counterparts in Stockholm for two days of talks.
While no significant breakthroughs occurred, the two sides floated the idea of extending the current 90-day tariff pause—the deadline is Aug. 12—by another 90 days. Trump has yet to confirm if he will extend it.
