Trump gives Mexico 90-day tariff reprieve as deadline for higher duties looms

U.S. President Donald Trump gave Mexico a 90-day reprieve from higher tariffs to negotiate a broader trade deal but was expected to issue higher final duty rates for most other countries as the clock wound down on his Friday deal deadline.

The extension, which avoids a 30% tariff on most Mexican non-automotive and non-metal goods compliant with the U.S.-Mexico-Canada Agreement on trade, came after a Thursday morning call between Trump and Mexican President Claudia Sheinbaum.

"We avoided the tariff increase announced for tomorrow," Sheinbaum wrote in an X social media post, adding that the Trump call was "very good."

Approximately 85% of Mexican exports comply with the rules of origin outlined in the USMCA, shielding them from 25% tariffs related to fentanyl, according to Mexico's economy ministry.

Trump said that the U.S. would continue to levy a 50% tariff on Mexican steel, aluminum and copper and a 25% tariff on Mexican autos and on non-USMCA-compliant goods subject to tariffs related to the U.S. fentanyl crisis.

"Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many," Trump said in a Truth Social post without providing details.

Trump is expected to issue tariff rate proclamations later on Thursday for countries that have not struck trade deals by a 12:01 a.m. EDT (0401 GMT) deadline.

"The rest of those countries that either do not have a deal or have a letter, they will be hearing from this administration by the midnight deadline tonight," White House press secretary Karoline Leavitt told a news conference.

She said there could still be some deals cut before the deadline, adding: "I do know foreign leaders are ringing his phone realizing this deadline is a real thing for them tomorrow, and they're bringing offers to the table."

South Korea agreed on Wednesday to accept a 15% tariff on its exports to the U.S., including autos, down from a threatened 25%, as part of a deal that includes a pledge to invest $350 billion in U.S. projects to be chosen by Trump.

But goods from India appeared to be headed for a 25% tariff after talks bogged down over access to India's agriculture sector, drawing a higher-rate threat from Trump that also included an unspecified penalty for India's purchases of Russian oil.

Although negotiations with India were continuing, New Delhi vowed to protect the country's labor-intensive farm sector, triggering outrage from the opposition party and a slump in the rupee.

Trump's rollout of higher import taxes on Friday will come amid more evidence they have begun driving up consumer goods prices.

Commerce Department data released Thursday showed prices for home furnishings and durable household equipment jumped 1.3% in June, the biggest gain since March 2022, after increasing 0.6% in May. Recreational goods and vehicles prices shot up 0.9%, the most since February 2024, after being unchanged in May. Prices for clothing and footwear rose 0.4%.