Overview

• Washington and Mexico City agreed to delay the scheduled 30% tariffs on all non-USMCA Mexican exports for 90 days starting August 1, preserving existing 25% levies on fentanyl and autos and 50% on steel, aluminum and copper.
• The deal safeguards the USMCA framework by keeping current tariff conditions intact across 84% of bilateral trade and maintaining an open dialogue between both governments.
• President Sheinbaum postponed her usual morning briefing to hold her ninth call with President Trump, highlighting intensive executive-level coordination on trade and security issues.
• A comprehensive security cooperation agreement targeting fentanyl trafficking, arms smuggling and cross-border crime is set to be signed next week, cementing parallel progress alongside trade talks.
• Analysts caution that the reprieve is temporary and advise Mexico to use the extension to diversify markets and strengthen its long-term USMCA strategy.