Following a phone call with Mexican President Claudia Sheinbaum, President Trump has announced that Mexico’s current trade terms will be extended for 90 days and that it will not be subject to higher tariffs on August 1.
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“The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border,” said Trump in a Truth Social post on Thursday.
The terms include a 25% penalty tariff related to fentanyl trade, a 25% tariff on cars, and a 50% tariff on aluminum, copper, and steel.
U.S. and Mexico to Continue Trade Talks
Trump added that Mexico has agreed to remove all of its trade barriers against the U.S. The two sides will continue trade negotiations over the next 90 days.
Mexico is the largest single-country trading partner of the U.S. and its top export destination. In 2024, the U.S. had a staggering $171.8 billion goods trade deficit with the country.
According to TipRanks’ Trump Dashboard, Alcoa Corp (AA), Ford (F), General Motors (GM), and three other stocks will likely be affected by Trump’s post.
