Overview

• President Trump announced a 90-day extension of reciprocal tariffs on Mexico after a phone call with President Sheinbaum, averting planned 30% levies due August 1.
• Under the extension, Mexico will continue to face 25% tariffs on fentanyl precursors and automobiles and 50% on steel, aluminum and copper while goods covered by the USMCA remain exempt.
• Both governments will use the three-month window to negotiate a lasting bilateral trade framework designed to replace reciprocal tariffs with capped duties.
• Mexican officials, including President Sheinbaum and Foreign Secretary Juan Ramón de la Fuente, hailed the deal as the best possible and said talks will address broader topics beyond the tariff dispute.
• Negotiators will also advance a nearly finalized US–Mexico security pact grounded in mutual respect for sovereignty and cooperation alongside trade discussions.