Associated Press, by Josh Boak
WASHINGTON (AP) — The US will win a 90-day negotiation period with Mexico on trade in trade as the tariff rate, part of the surge in trade on Thursday, is maintained with Mexico.
Trump posted on his true social platform that a phone conversation with Mexican leader Claudia Sheinbaum is “increasingly successful, and we know and understand each other.”
The Republican president had threatened a 30% tariff on goods from Mexico in a July letter. This is what Mexico said it could stop it for the next three months.
“We have won 90 days to avoid the increase in tariffs announced tomorrow and to build a long-term agreement through dialogue,” Sinbaum wrote in X.
The leader’s morning call came at a moment of pressure and uncertainty in the global economy. The state is rushing to finalise a summary of its trade framework with Trump, in order to avoid simply imposing higher tariff rates that could overturn the economy and government.
Trump signed contracts with South Korea on Wednesday with former European Union, Japan, Indonesia and the Philippines. His commerce secretary, Howard Lutnick, said on Fox News’ “Hanity” there was an agreement with Cambodia and Thailand after agreeing to a ceasefire on the border conflict.
Among those uncertain about their trade status were wealthy Switzerland and Norway.
Norwegian finance minister Jens Stoltenberg said it was “completely uncertain” whether the transaction will be completed before Trump’s deadline.
But even the disclosure of a transaction can provide a slight sense of security to American trading partners.
EU officials are waiting to complete a key document outlining how the framework for taxing cars and other goods imported from the 27-member state bloc taxes. Trump announced his contract on Sunday while he was in Scotland.
“The US is making these commitments. It’s up to the US to implement them now. The ball is in their court,” said Olov Gill, spokesman for the EU Commission. The document is not legally binding.
Trump said goods imported to the US as part of the agreement with Mexico will continue to face 25% tariffs that he ostensibly links to fentanyl trafficking. He said cars face 25% tariffs and copper, aluminum and steel will be taxed at 50% during the negotiation period.
He said Mexico would end the “non-tariff trade barrier,” but he did not provide details.
Some products continue to be protected from tariffs by the 2020 US-Mexico-Canada Agreement or the USMCA negotiated during his first term.
But Trump appeared to have gotten worse with the deal. One of his first important moves as president was to tariff on goods from both Mexico and Canada earlier this year.
US Census Bureau figures show that the US operates a $171.5 billion trade imbalance with Mexico last year. In other words, the US purchased more items from Mexico than it was sold to this country.
The imbalance with Mexico grew in the aftermath of the USMCA, as it was only $63.3 billion in 2016, before Trump began his first term in office.
In addition to addressing fentanyl trafficking, Trump has aimed to bridge the trade gap.
Associated Press writers Lorne Cook in Brussels and Jamey Keaten of Geneva contributed to this report.
Original issue: July 31, 2025 11:20am EDT
