Trump Extends Tariff Status Quo On Mexico For 90 Days Amid Trade Deal Talks
As per the status quo, the US would continue to levy "25% fentanyl tariff", along with 25% tariff on cars, and 50% tariff on steel, aluminum, and copper exported from Mexico
US President Donald Trump on Thursday said the tariffs on southern neighbour Mexico would not be raised from Aug. 1—the deadline he has set for other trading partners—as both the countries are locked in trade deal negotiations.
As per the status quo, the US would continue to levy "25% fentanyl tariff", along with 25% tariff on cars, and 50% tariff on steel, aluminum, and copper being imported from Mexico, Trump said on his social media platform Truth Social.
"The complexities of a deal with Mexico are somewhat different than other nations because of both the problems, and assets, of the border. We have agreed to extend, for a 90-day period, the exact same deal as we had for the last short period of time," he posted.
Additionally, Mexico has agreed to immediately terminate its non-tariff trade barriers, Trump added.
"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," he further said.
This comes a day after Trump went ahead to raise the baseline tariff from 10% to 25% against India, despite the trade deal negotiations between New Delhi and Washington being currently underway. The revised duties will come into effect from Aug. 1.
The reprieve for Mexico also comes in the backdrop of the fact that the Latin American country is the US' topmost trading partner. Till May, around 83% of the country's exports to the US were exempt from tariffs, according to a Bloomberg Economics analysis.
Earlier, Trump also backed away from imposing 50% tariff on all goods exported from Brazil, another Latin American economy. His administration has decided to maintain the 10% tariff rate on various products ranging from civilian aircrafts to packaged juices.
