The postponement continues a pattern for Mexican President Claudia Sheinbaum reaching last-minute agreements with U.S. President Donald Trump on tariffs.CHRISTOPHER FURLONG/AFP/Getty Images
U.S. President Donald Trump has postponed expanded tariffs on Mexico for 90 days after reaching an agreement with Mexican President Claudia Sheinbaum, as the two countries negotiate a larger bilateral agreement encompassing trade, security and migration.
Both presidents announced the extension in social media posts Thursday after a 40-minute phone call, which Mr. Trump described as “very successful in that, more and more, we are getting to know and understand each other.”
“The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border,” Mr. Trump wrote in a Truth Social post.
Ms. Sheinbaum celebrated the postponement as another accomplishment for her strategy of quiet diplomacy, in which she counsels keeping a “cool head” in public and refrains from criticizing Mr. Trump but makes significant concessions behind closed doors.
“We have the best possible agreement,” she said at a news conference after the announcement. “Why is this agreement important? First, it doesn’t raise tariffs. If you look at the agreements with other countries, we’re actually staying the same as before. Second, it safeguards the USMCA.”
The postponement continues a pattern for Mexico of reaching last-minute agreements with Mr. Trump on tariffs, with Ms. Sheinbaum emerging from discussions to proclaim victory.
A 25-per-cent tariff remains on Mexican goods not covered by the United States-Mexico-Canada trade agreement for the time being – ostensibly to force Mexico to crack down on fentanyl smuggling – along with a 25-per-cent tariff on vehicles and 50-per-cent tariffs on steel, aluminum and copper.
“There will be continued cooperation on the Border as it relates to all aspects of Security, including Drugs, Drug Distribution, and Illegal Immigration into the United States,” Mr. Trump wrote. “Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many.”
Mr. Trump had threatened 30-per-cent tariffs if no agreement was reached by Aug. 1. He said in a July 12 letter that Mexico had helped stem the flow of migrants toward the U.S.-Mexico border, but it “still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground.”
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White House Press Secretary Karoline Leavitt on Thursday acknowledged “an increase in co-operation” with Mexico on security and migration. “We appreciate those efforts and will continue to work in good faith and continue to have these trade discussions as well.”
The U.S. government also applied pressure on Mexico ahead of the deadline by reviving an old aviation dispute, suspending an anti-dumping agreement on tomatoes and sanctioning three banks for alleged fentanyl violations – to name but three measures.
Ms. Sheinbaum, however, spoke of a relationship of “mutual respect,” but did not discuss security matters in any detail during her news conference.
“President Trump treats us with respect in every call, and so do we. We may not agree, but there is respect,” the Mexican President said. “I think the important thing here is to avoid confrontation, to defend our principles and beliefs, to always find alternatives to President Trump’s proposals and to maintain a relationship of ongoing respect.”
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Mexico’s quiet diplomacy contrasts with Canada’s more combative, “elbows up” posture toward the Trump administration. Despite the different approaches, “they more or less get the same treatment … at least for their USMCA-compliant goods,” said Diego Marroquín Bitar, a Mexican trade expert. “We cannot talk about a victory from the Mexican perspective until we see the details of this larger, comprehensive framework between the U.S. and Mexico.”
Mexico has sought to reach a larger agreement with the U.S. on trade, water, security and migration, according to a statement from the Foreign Relations Secretariat.
Analysts expressed mixed views on the 90-day extension, with most lamenting the ongoing uncertainty as the country’s economy hits a rough patch.
“Trump kicks the can down the road, but that’s the way he has to continue putting pressure on the Sheinbaum administration to deliver things on other things like fentanyl,” said Brenda Estefan, a professor at the IPADE business school in Mexico City.
But “the U.S. gets a lot also out of this relationship. So I think that’s what keeps him from not pulling the trigger” on more permanent tariffs on Mexico.