Trump says Mexico gets 90-day extension to land trade deal

Mexico is one of the United States’ top three individual trade partners, alongside Canada and China. Over the course of six months of negotiations, President Trump has intermittently granted Mexico pauses and exemptions from his proposed new and increased tariffs.

The White House initially cited fentanyl smuggling across U.S. borders as a central reason for raising tariffs on all three countries.

On February 1, Trump followed through on his long-standing threat by imposing a 25% tariff on goods from Mexico and Canada, along with a new 10% tariff on Chinese imports. He argued that these countries had failed to curb the export of chemicals used in making fentanyl, the potent synthetic opioid.

Just days later, on February 3, Trump agreed to a 30-day pause on the 25% tariffs for Mexico and Canada, with the delay officially beginning on March 4.

Then, on March 5, the administration granted a one-month exemption from the tariffs for U.S. automakers that rely on imports from Mexico and Canada.

On July 12, Trump again escalated pressure, threatening to impose 30% tariffs on Mexican imports starting August 1. Mexico condemned the move as an “unfair deal” and declared that its national sovereignty was not up for negotiation.

Finally, on July 31, the U.S. and Mexico reached an agreement to extend their current tariff framework for another 90 days. That deal includes a 25% “Fentanyl Tariff,” a 25% tariff on automobiles, and a 50% tariff on imports of steel, aluminum, and copper.