US Prez Announces 90-Day Trade Talks With Mexico as 25% Tariffs Remain in Place

The President of the United States, Donald Trump, on Thursday announced a 90-day negotiating period with Mexico following his “very successful” phone conversation with his Mexican counterpart, Claudia Sheinbaum, AP reported. Despite the talks, Trump confirmed that steep U.S. tariffs on Mexican imports, including a 25 per cent duty on autos, will remain in effect.

Trump’s Statement on Mexico’s Tariff

In a post on Truth Social, the US President said the ongoing tariffs are tied to his administration’s efforts to curb fentanyl trafficking and close the growing U.S. trade deficit with Mexico. In addition to automobiles, copper, aluminium, and steel imports from Mexico will face 50 per cent tariffs.

Trump also claimed that Mexico had agreed to end “Non-Tariff Trade Barriers,” though no details were provided. Some exemptions still apply under the United States-Mexico-Canada Agreement (USMCA), a trade deal negotiated during Trump’s first term.

However, the US President appeared to distance himself from that agreement, which is due for renegotiation in 2026, suggesting he may no longer view it as favourable.

Previously, Trump reinstated tariffs on both Mexican and Canadian goods as part of his broader trade agenda. The U.S. trade deficit with Mexico reached $171.5 billion last year, a sharp rise from $63.3 billion in 2016, the year before Trump’s first term began.

Trump said the negotiations with Mexico would address both trade and drug enforcement concerns, particularly the cross-border flow of fentanyl, a major issue he has repeatedly spotlighted in his 2024 campaign. (AP Inputs)

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