Trump extends Mexico negotiations by 90 days, keeps 25% tariff rates in place

Just hours before the deadline, Trump on Thursday said he would enter a 90-day negotiating period with Mexico over trade as 25% tariff rates stay in place, viding a bit of clarity to a massive rewiring of the global economy that will require the president to sign a new executive order

Trump posted on his Truth Social platform that his phone conversation with Mexican leader Claudia Sheinbaum was “very successful in that, more and more, we are getting to know and understand each other.” The Republican president had threatened tariffs of 30% on goods from Mexico in a July letter, something that Sheinbaum said Mexico gets to stave off for the next three months. “We avoided the tariff increase announced for tomorrow and we got 90 days to build a long-term agreement through dialogue,” Sheinbaum wrote on X

The leaders’ morning call came at a moment of pressure and uncertainty for the world economy

As Trump’s deadline loomed, nations were scrambling to finalize the outlines of trade frameworks so he would not simply impose higher tariff rates that could upend economies and governments

Trump reached a deal with South Korea on Wednesday, and earlier with the European Union, Japan, Indonesia and the Philippines

His commerce secretary, Howard Lutnick, said on Fox News Channel’s “Hannity” that there were agreements with Cambodia and Thailand after they had agreed to a ceasefire to their border conflict

White House press secretary Karoline Leavitt said Trump “at some point this afternoon or later this evening” will sign an order to impose new rates starting at 12:01 a.m

Countries that have not received a prior letter from Trump or negotiated a framework will be notified of their ly tariff rates, either by letter or executive order, she said

Among those uncertain their trade were wealthy Switzerland and Norway

Norwegian Finance Minister Jens Stoltenberg said it was “completely uncertain” whether a deal would be before Trump’s deadline

But even the public announcement of a deal can offer scant reassurance for an American trading partner

EU officials are waiting to complete a crucial document outlining how the framework to tax imported autos and other goods from the 27-member state bloc would operate

Trump had announced a deal Sunday while he was in Scotland. “The U.S. has made these commitments

Now it’s up to the U.S. to implement them

The ball is in their court,” EU commission spokesman Olof Gill said

The document would not be legally binding

Trump said as part of the agreement with Mexico that goods imported into the U.S. would continue to face a 25% tariff that he has ostensibly linked to fentanyl trafficking

He said autos would face a 25% tariff, while copper, aluminum and steel would be taxed at 50% during the negotiating period

He said Mexico would end its “Non Tariff Trade Barriers,” but he didn’t vide specifics

But Trump appeared to have soured on that deal, which is up for renegotiation next year

One of his first significant moves as president was to tariff goods from both Mexico and Canada earlier this year

That means the U.S. bought more goods from Mexico than it sold to the country

Besides addressing fentanyl trafficking, Trump has made it a goal to close the trade gap. ___ Associated Press writers Lorne Cook in Brussels and Jamey Keaten in Geneva contributed to this report

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