Trump Announces 90-Day Negotiation Period with Mexico Amidst Tariff Tensions

President Donald Trump declared a 90-day negotiation period with Mexico while maintaining a 25% tariff on imports. After discussions with Mexico's leader Claudia Sheinbaum, both countries aim for better understanding, though tariffs remain linked to issues like fentanyl trafficking. Certain goods are protected under the USMCA.

President Donald Trump announced a 90-day negotiating period with Mexico, keeping a 25% tariff on imports in place. This follows a call with Mexico's leader, Claudia Sheinbaum, where Trump expressed optimism about improved relations and understanding between the two countries.

Trump used Truth Social as a platform to communicate the continued tariffs, explicitly linking them to concerns over fentanyl trafficking. While automobile imports would face a 25% tariff, other materials like copper, aluminum, and steel would be taxed at a rate of 50%.

Despite protections under the 2020 US Mexico Canada Agreement (USMCA), Trump hinted at potential renegotiations next year, having previously expressed dissatisfaction with the agreement. The US had a USD 171.5 billion trade deficit with Mexico last year, highlighting ongoing trade challenges.

(With inputs from agencies.)