Mexico Avoids US Tariff Increase

Mexican President Claudia Sheinbaum announced on Thursday that Mexico has successfully avoided the tariff hike planned by US President Donald Trump for August 1. This comes after Trump granted Mexico an additional 90 days to negotiate a trade deal.

"We had a very productive conversation with President Trump. As a result, the tariff increase scheduled for tomorrow has been postponed, and we've secured a 90-day period to work towards a long-term agreement through dialogue," Sheinbaum shared on X.

Details of the Tariff Plan

Initially, Mexico faced a potential 30% tax starting August 1, up from the original 25%, with exemptions for USMCA imports. However, Trump confirmed that the US would maintain its existing tariffs, including a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper.