Trump had previously threatened to raise tariffs from 25% to 30% to combat cross-border crime and drug trafficking.
The new tariffs were expected to take effect on Friday as part of Trump's “reciprocal” tariff policies against many countries. However, this plan was put on hold after a meeting between Trump and Mexican President Claudia Sheinbaum, which was described as “very successful”.
In a statement on the social media platform Truth Social, Trump stated, "We are getting to know and understand each other more and more. The complexity of a deal with Mexico is different, both because of their border issues and their economic assets," Trump noted in a statement on social media.
Trump also announced a 90-day extension of the existing agreement under which Mexico will continue to pay the existing 25% Fentanyl tax, 25% auto tax and 50% steel, aluminum and copper tariffs. He also stated that Mexico had agreed to remove several non-tariff trade barriers, but did not elaborate on which ones.
Trump stated that they aim to sign a comprehensive trade agreement with Mexico during this process. Vice President JD Vance, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, Secretary of Commerce Howard Lutnick, Secretary of State Marco Rubio, US Trade Representative Jamieson Greer and Deputy Chief of Staff Stephen Miller attended the meeting.
The statement noted that while a comprehensive agreement with Mexico, one of the US' largest trading partners, has not yet been reached, Trump's temporary suspension of tariffs reflects Mexico's strategic importance and the constructive relationship with Sheinbaum.
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