US and Mexico agree to 90-day extension to land trade deal

30% tariffs on goods from Mexico were set to take effect Friday

“The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border,” President Donald Trump said. (Photo: Jim Allen/FreightWaves)

President Donald Trump said on Thursday he had agreed with Mexican President Claudia Sheinbaum to extend an existing trade deal with Mexico for 90 days while negotiations continue for a long term agreement.

The 90-day extension means a 25% tariff rate will stay in place for Mexico instead of a 30% levy that would have started Friday as part of the Trump administration’s global “reciprocal” tariff policy.

“The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border,” Trump wrote on Truth Social.

Mexico is currently the top U.S. trade partner, with two-way trade totaling $74.5 billion in May, according to Census Bureau data. In 2024, U.S.-Mexico trade reached a record breaking $840 billion.

Sheinbaum said they will continue to work with the Trump administration on a trade agreement.

“We had a very good call with the President of the United States, Donald Trump,” Sheinbaum wrote on Facebook. “We avoided the tariff hike announced for tomorrow and achieved 90 days to build a long-term agreement from dialogue.”

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com