President Donald Trump announced in a Truth Social post that he and Mexican President Claudia Sheinbaum agreed to extend the deadline for reaching a trade deal, though he seemed flexible on the timeline. The buzzer-beater agreement comes just one day before the deadline Trump announced earlier this month.
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“We have agreed to extend, for a 90-day period, the exact same deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25% fentanyl tariff, 25% tariff on cars, and 50% tariff on steel, aluminum, and copper. Additionally, Mexico has agreed to immediately terminate its non-tariff trade barriers, of which there were many,” Trump wrote.
The president added that over the next 90 days the U.S. and Mexico would hold discussions with the goal of signing a trade deal in that time period or after that.
Trump said he and Sheinbaum are “getting to know and understand each other,” noting that “the complexities” of a deal with Mexico are different from other nations because of the border. However, he committed to working with Mexico on the issue, particularly in terms of security.
“There will be continued cooperation on the border as it relates to all aspects of security, including drugs, drug distribution, and illegal immigration into the United States.”
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Sheinbaum wrote about the call with Trump on X, saying it was “very good.”
“We had a very good call with U.S. President Donald Trump. We avoided a tariff increase announced for tomorrow and secured 90 days to build a long-term agreement through dialogue,” Sheinbaum wrote.
Trump announced on July 12 that Mexico and the European Union would face higher tariffs if they did not agree to new trade deals by Aug. 1. In addition to the announcement, he posted letters to Sheinbaum and EU President Ursula von der Leyen on Truth Social.
“Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,” Trump wrote in a July 11 letter to Sheinbaum. “Mexico still has not stopped the cartels who are trying to turn all of North America into a narco-trafficking playground. Obviously, I cannot let that happen!”
In the letter, Trump informed Sheinbaum that Mexico would face a 30% tariff starting Aug. 1, and that if it raised its tariffs on the U.S. it would in turn face the same tariff in addition to the 30%.
The EU has also managed to avoid being hit with a 30% tariff. On Sunday, Trump announced that the U.S. and the EU had agreed on a framework for a trade deal.
“We are agreeing that the tariff straight across for automobiles and everything else will be a straight-across tariff of 15%,” Trump said. “So we have a tariff of 15%. We have the opening up of all of the European countries, which I think I could say were essentially closed.”
Under the terms of the trade deal, nearly all goods from the EU will be subjected to a 15% baseline tariff, which is lower than the 20% “reciprocal” tariff that Trump announced at his “Liberation Day” event in early April, but significantly higher than the 2.5% tariffs in place last year.
Fox News Digital’s Bonny Chu and Eric Revell contributed to this report.
