Donald Trump deadline: US President grants Mexico 90-day window; tariffs remain in force

US President Donald Trump on Thursday announced a 90-day extension for trade negotiations with Mexico, allowing both countries more time to reach a long-term agreement. While tariffs on key Mexican exports remain in place during this period, leaders on both sides expressed optimism about resolving their differences through dialogue.In a post on Truth Social, Trump said he had a “very successful” phone call with Mexican President Claudia Sheinbaum, during which they agreed to continue discussions for another 90 days. The pause would give both governments a chance to work toward “a long-term deal,” he said.Despite the extension, existing tariffs, including a 25% levy on autos and a 50% duty on steel, aluminum, and copper imports, will remain active during the negotiating window. A 25% “Fentanyl Tariff” will also stay in force, Trump said.Trump added that Mexico had “agreed to eliminate its Non-Tariff Trade Barriers,” though he did not provide further details. The US president said he was confident about progress, noting that “we are getting to know and understand each other,” and called the relationship “somewhat different than other nations because of both the problems and assets of the border.”Sheinbaum confirms 90-day windowMexican President Claudia Sheinbaum confirmed the development, saying the extension had helped avert a tariff escalation for now. “We avoided the tariff increase... and secured 90 days to build a long-term agreement through dialogue,” she said, as reported by AFP.Sheinbaum gave no indication of what concessions Mexico may offer but indicated that both countries were committed to maintaining open channels for talks.The 90-day extension comes amid Trump’s renewed focus on reducing the US trade deficit with Mexico and pressuring the country over fentanyl trafficking. According to the US Census Bureau, the US trade deficit with Mexico was $171.5 billion in 2023, a steep rise from $63.3 billion in 2016.Trump has argued that high tariffs are essential to protect American industries and reduce reliance on foreign manufacturing.Until then, businesses in both nations must continue to operate under the current tariff structure, while governments work to settle differences.