President Donald Trump announced Thursday the U.S. will give Mexico 90 more days to negotiate a trade deal. In the meantime, the United States’s tariffs on Mexico will remain at 25 percent.
Trump and Mexican President Claudia Sheinbaum had a phone call Thursday ahead of Trump’s tariff deadline on Friday. The pair agreed to a 90-day extension to figure out a trade deal because of the unique complexities of U.S. trade with Mexico, Trump said in a Truth Social post.
“We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper,” Trump posted.
“Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many. We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer,” Trump added.
Trump’s tariff deadline is fast approaching and several U.S. allies have negotiated deals with the administration to stave off the possibility of massive tariff increases. Trump has announced trade agreements with the European Union, Japan, South Korea, and other partners to facilitate foreign investment and open up international markets.
“We had a very good call with the President of the United States, Donald Trump. We avoided the tariff increase announced for tomorrow and secured 90 days to build a long-term agreement through dialogue,” Sheinbaum said in a statement.
Leading up to the tariff deadline, Trump insisted repeatedly that he would not move his deadline back further as the U.S. attempts to broker deals. Trump previously delayed his “liberation day” tariffs for 90 days in April because they sparked an immediate panic on Wall Street and economic forecasters predicted an imminent recession.
In the second quarter of 2025, the U.S. economy grew at a faster-than-expected rate of 3 percent of GDP as Trump’s tariffs began taking effect and the president negotiated trade agreements.
The U.S. will continue working with Mexico on matters related to drug trafficking and illegal immigration. Trump imposed the 25 percent tariffs on Mexico earlier this year because of its lack of cooperation with the U.S. on mitigating fentanyl smuggling and illegal immigration across the southern border.
Under Trump, southern border crossings have plunged to historic lows because of the administration’s hardline approach to preventing illegal immigration. Trump’s hawkish approach to the border is part of his broader crackdown on illegal immigration characterized by mass deportations and combatting gangs.