The United States and Mexico agreed on Thursday to keep talking about a potential trade deal for 90 more days, averting the heavier tariffs President Trump had threatened to impose on America’s largest trading partner just before they were set to begin.
The news of the pause, announced by Mr. Trump and President Claudia Sheinbaum of Mexico on social media, came after the two leaders spoke by phone on Thursday morning. It also followed months of painstaking negotiations between the two sides that had left many Mexicans apprehensive about what Mr. Trump would ultimately decide.
But his statement on Thursday left many questions unresolved about the future trading relationship between United States and its two biggest trading partners, Mexico and Canada, especially as Mr. Trump has persistently married the threat of steep tariffs with political demands.
And in stark contrast to the optimism expressed by Mexican officials, there was a growing sense of uncertainty in Canada. Mr. Trump’s announcement about the tariff pause with Mexico did not mention the United States’ second-largest trading partner, and it came hours after he said that Canada’s decision to back Palestinian statehood “will make it very hard for us to make a Trade Deal with them.”
Last month, Prime Minister Mark Carney of Canada confidentially predicted that he could reach a deal that struck down all of the Trump tariffs. By Wednesday, Mr. Carney’s self-assurance had dissipated, and he conceded that reaching any sort of a deal by the end of the week might prove impossible.
The agreement announced on Thursday will keep in place the 25 percent tariff on all goods from Mexico not covered by an existing free-trade agreement between the United States, Mexico and Canada. That rate had been set to rise to 30 percent on Friday, the deadline Mr. Trump set for countries across the globe to strike deals or face import taxes of as much as 50 percent.
“It was a very good agreement, and it puts our country in a very good situation,” Ms. Sheinbaum told reporters, adding that “mutual respect” was key to achieving the extension. “Within this new world trade order, we have the best possible agreement.”
In exchange, Mr. Trump said on social media, Mexico had agreed to “immediately terminate” its other trade barriers outside of tariffs, “of which there were many.” Mexican officials said they were discussing such matters, including labor-related mechanisms and disputes involving intellectual property.
Mexico did not offer any additional concessions in its latest round of U.S. trade talks, Ms. Sheinbaum said, although future actions might involve reducing Mexico’s trade deficit with the United States and increasing the investment of U.S. companies in Mexico.
“This is not only an extension,” her economy minister, Marcelo Ebrard, said during the news conference. “It is a very advantageous position for Mexico, compared to any other country.”
Mr. Trump has repeatedly made demands of Mexico, pushing Ms. Sheinbaum to do more to battle drug cartels and stop the flow of fentanyl and migrants toward the United States.
Ms. Sheinbaum said a security agreement, governing matters like intelligence sharing and curbing the movement of fentanyl precursors and illegal guns, could be signed as early as next week.
Mr. Trump imposed the 25 percent tariff on all Mexican goods in March, saying it was in response to illegal immigration and fentanyl trafficking. Days later, he agreed to suspend tariffs on any products that fell under the U.S.-Mexico-Canada Agreement. (In June, Mexican officials said that meant about 87 percent of Mexican exports were free of U.S. tariffs, in part because of the exception granted to goods traded under the trilateral deal.)
When Mr. Trump threatened to increase Mexico’s tariffs to 30 percent earlier this month, he said the country’s officials had cooperated on immigration but had not done enough to stop cartels and fentanyl.
Earlier this week, he vowed that his Aug. 1 deadline would not be extended. Yet on Thursday, he reversed course.
“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 said in his announcement.
“I think he respects us,” Ms. Sheinbaum said when asked about her relationship with Mr. Trump on Thursday. “And we respect him like neighbors.”
Mr. Trump said Mexico would continue to face his global 25 percent tariffs on cars, and 50 percent tariffs on steel, aluminum and copper. Mexico has been lobbying to have those reduced or removed.
The 90-day reprieve on the 30 percent tariffs “is a positive result for Mexico and proof that the strategy of ‘negotiation and not confrontation’ that President Sheinbaum has implemented is being recognized by President Trump,” said Kenneth Smith Ramos, a former trade negotiator for Mexico.
However, he added, it was clear that Mexico and the United States were unable to reach a long-term agreement on eliminating the tariffs.
“It’s a positive accomplishment for the Mexican government to avoid the 30 percent tariffs. But I see it more as a 0-0 tie,” he said. “The uncertainty will remain at least for the next 90 days.”
Ashley Ahn contributed reporting.
James Wagner covers Latin America, including sports, and is based in Mexico City. A Nicaraguan American from the Washington area, he is a native Spanish speaker.
Emiliano Rodríguez Mega is a reporter and researcher for The Times based in Mexico City, covering Mexico, Central America and the Caribbean.
Ian Austen reports on Canada for The Times. A Windsor, Ontario, native now based in Ottawa, he has reported on the country for two decades. He can be reached at [email protected].
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