Breakthrough in US-Mexico Trade: Tariff Pause Secured

Mexican President Claudia Sheinbaum announced a temporary halt on new tariffs after a discussion with U.S. President Donald Trump. This move avoids impending 30% tariffs and safeguards the USMCA. The agreement signifies progress towards a long-term trade deal and maintains Mexico’s key access to the U.S. market.

Devdiscourse News Desk | Updated: 31-07-2025 22:18 IST | Created: 31-07-2025 22:18 IST

Breakthrough in US-Mexico Trade: Tariff Pause Secured — This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.

Mexican President Claudia Sheinbaum announced on Thursday that a new agreement halts the imposition of tariffs set to take effect, following a discussion with U.S. President Donald Trump.

The agreement averts 30% tariffs, protecting the U.S.-Mexico-Canada Agreement (USMCA). This ensures that goods under USMCA will remain exempt from Trump's 25% tariffs implemented earlier due to the fentanyl crisis.

Mexican exports continue to benefit from preferential access to the U.S. market, with 85% complying with USMCA's rules of origin. Economy Minister Marcelo Ebrard noted this deal as a critical step towards a sustainable trade agreement.

(With inputs from agencies.)