Trump announces 90-day trade negotiation period with Mexico; current tariffs stay in place

US President Donald Trump on Thursday (July 31) announced that the United States and Mexico have agreed to extend tariffs on key Mexican exports for another 90 days, while both countries work toward finalising a comprehensive trade agreement.

In a post on Truth Social, Trump revealed that he had a “very successful” phone call with Mexican President Claudia Sheinbaum, during which the two leaders agreed to maintain existing tariffs and eliminate several non-tariff barriers.

Tariffs extended

As part of the extended arrangement, Mexico will continue paying:

    A 25% tariff on fentanyl and related substances,
    A 25% tariff on automobiles, and
    A 50% tariff on steel, aluminum, and copper.

“These are the exact same terms as our recent short-term deal,” Trump wrote, adding that the extension will allow both governments more time to work toward a longer-term agreement.
Non-tariff barriers removed

Trump also claimed that Mexico has agreed to “immediately terminate its non-tariff trade barriers,” which he said had been numerous and problematic for US exports. Specifics on which barriers will be lifted were not provided.

US officials present

Trump noted that several senior US officials were involved in the call and ongoing negotiations, including: Vice President JD Vance, Secretary of the Treasury Scott Bessent, Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick, US Trade Representative and Ambassador Jamieson Greer, Chief of Staff Susie Wiles, and Homeland Security Advisor Stephen Miller.

Focus on border security

In addition to trade issues, the two leaders discussed continued cooperation on border security, including efforts to curb drug trafficking, drug distribution, and illegal immigration. Trump emphasised the “complexities of a deal with Mexico,” citing both the challenges and strategic importance of the shared border.