The extension, which avoids a 30% tariff on most Mexican non-automotive and non-metal items compliant with the U.S.-Mexico-Canada Settlement on commerce, got here after a Thursday morning name between Trump and Mexican President Claudia Sheinbaum.
| Photograph Credit score: Reuters
U.S. President Donald Trump gave Mexico a 90-day reprieve from greater tariffs to barter a broader commerce deal however was anticipated to challenge greater remaining responsibility charges for many different international locations because the clock wound down on his Friday (August 1, 2025) deal deadline.
The extension, which avoids a 30% tariff on most Mexican non-automotive and non-metal items compliant with the U.S.-Mexico-Canada Settlement on commerce, got here after a Thursday morning name between Mr. Trump and Mexican President Claudia Sheinbaum.
“We averted the tariff improve introduced for tomorrow,” Sheinbaum wrote in an X social media submit, including that the Mr. Trump name was “superb.”
Roughly 85% of Mexican exports adjust to the principles of origin outlined within the USMCA, shielding them from 25% tariffs associated to fentanyl, in keeping with Mexico’s financial system ministry.
Mr. Trump mentioned that the U.S. would proceed to levy a 50% tariff on Mexican metal, aluminum and copper and a 25% tariff on Mexican autos and on non-USMCA-compliant items topic to tariffs associated to the U.S. fentanyl disaster.
“Moreover, Mexico has agreed to right away terminate its Non Tariff Commerce Obstacles, of which there have been many,” Mr. Trump mentioned in a Fact Social submit with out offering particulars.
Powerful questions from judges
Mr. Trump hit Brazil on Wednesday with a steep 50% tariff as he escalated his struggle with Latin America’s largest financial system over its prosecution of his good friend and former President Jair Bolsonaro, however softened the blow by excluding sectors reminiscent of plane, vitality and orange juice from heavier levies.
The run-up to Mr. Trump’s tariff deadline was unfolding as federal appeals courtroom judges sharply questioned Mr. Trump’s use of a sweeping emergency powers legislation to justify his sweeping tariffs of as much as 50% on almost all buying and selling companions.
Mr. Trump invoked the 1977 Worldwide Emergency Financial Powers Act to declare an emergency over the rising U.S. commerce deficit and impose his “reciprocal” tariffs and a separate fentanyl emergency.
The Courtroom of Worldwide Commerce dominated in Might that the actions exceeded his government authority, and questions from judges throughout oral arguments earlier than the U.S. Appeals Courtroom for the Federal Circuit in Washington indicated additional skepticism.
“IEEPA does not even say tariffs, does not even point out them,” Choose Jimmie Reyna mentioned at one level throughout the listening to.
China deal not finished
U.S. Treasury Secretary Scott Bessent mentioned america believes it has the makings of a commerce cope with China, however it’s “not 100% finished,” and nonetheless wants Mr. Trump’s approval.
U.S. negotiators “pushed again fairly a bit” over two days of commerce talks with the Chinese language in Stockholm this week, Bessent mentioned in an interview with CNBC.
China is going through an August 12 deadline to succeed in a sturdy tariff settlement with Mr. Trump’s administration, after Beijing and Washington reached preliminary offers in Might and June to finish escalating tit-for-tat tariffs and a cut-off of uncommon earth minerals.
Revealed – August 01, 2025 05:17 am IST
