Trump agrees with Mexican president to pause higher tariffs for 90 days

July 31, 2025

US President, Donald Trump has announced a 90-day pause on higher tariffs for goods imported from Mexico, following what he described as a productive phone call with Mexican President Claudia Sheinbaum.

The decision extends the current tariff structure, where Mexican goods are taxed at 25% unless they comply with the United States-Mexico-Canada Agreement (USMCA). Products that meet USMCA standards remain exempt, apart from some sector-specific tariffs.

“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 wrote 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. We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time.”

He added, “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.”

Mexico remains a key trade partner for the US, having surpassed China as the top source of American imports in 2023. Mexican exports to the US include cars, electronics, apparel, and shoes.

At the same time, Mexico is the second-largest destination for US exports, after Canada.

Although Mexico has not retaliated against any of the US tariffs so far, President Sheinbaum has consistently warned that an escalation could prompt her government to impose tariffs on American goods.

The reprieve comes just ahead of a looming tariff deadline. Canadian goods—also subject to similar tariff rates since April—could face a 35% tariff if no agreement is reached before 12:01 a.m. ET. It’s unclear whether Trump plans to speak with Canadian Prime Minister Mark Carney before that deadline.

Other countries are also under pressure. On Wednesday, Trump imposed a 40% tariff on goods from Brazil, with some exceptions.

He has sent warning letters to several other nations, and even those that haven’t received formal notice could face tariff increases. Trump has proposed a global hike in the standard tariff rate from 10% to between 15% and 20%.