US-Mexico Trade Talks: 90 Days to Negotiate Amid Tariff Standoff
The US enters a 90-day negotiation period with Mexico as 25% tariffs remain. President Trump discussed trade and fentanyl trafficking with Mexican leader Claudia Sheinbaum. Autos, copper, aluminum, and steel face tariffs despite the USMCA, with potential future changes. The US seeks to address a $171.5 billion trade imbalance.
- Country:
- United States
The United States has commenced a 90-day negotiation period with Mexico over trade matters, with current 25% tariff rates remaining intact, according to President Donald Trump's announcement on Thursday.
Trump shared on his Truth Social platform that a recent phone conversation with Mexican leader Claudia Sheinbaum was productive, highlighting improved mutual understanding. Despite this, goods from Mexico, particularly autos, will continue to face a 25% tariff due to concerns linked to fentanyl trafficking. Meanwhile, copper, aluminum, and steel will be taxed at 50%.
Mexico will reportedly eliminate its 'Non Tariff Trade Barriers,' although details were not specified. While Trump has proposed higher tariffs in the past, Sheinbaum announced Mexico has 90 days to develop a long-term agreement, staving off increased tariffs temporarily. The US aims to address a $171.5 billion trade imbalance, exacerbated since the USMCA's inception.
(With inputs from agencies.)
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