Trump Announces 90-Day Negotiation Period with Mexico Amidst Tariff Tensions

President Donald Trump announced a 90-day negotiating period with Mexico, keeping a 25% tariff on imports in place. This follows a call with Mexico's leader, Claudia Sheinbaum, where Trump expressed optimism about improved relations and understanding between the two countries.

Trump used Truth Social as a platform to communicate the continued tariffs, explicitly linking them to concerns over fentanyl trafficking. While automobile imports would face a 25% tariff, other materials like copper, aluminum, and steel would be taxed at a rate of 50%.

Despite protections under the 2020 US Mexico Canada Agreement (USMCA), Trump hinted at potential renegotiations next year, having previously expressed dissatisfaction with the agreement. The US had a USD 171.5 billion trade deficit with Mexico last year, highlighting ongoing trade challenges.

(With inputs from agencies.)