Trump gives Mexico 90-day reprieve from higher tariffs

[WASHINGTON] President Donald Trump said he extended Mexico’s current tariff rates for 90 days to allow more time for trade negotiations with the US’ southern neighbour.

“We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25 per cent Fentanyl Tariff, 25 per cent Tariff on Cars, and 50 per cent Tariff on Steel, Aluminium, and Copper,” Trump said on Thursday (Jul 31) in a social media post.

Trump threatened last month to increase Mexico’s country-based duty to 30 per cent starting Aug 1. The president’s decision comes shortly after he said he would not extend his Friday deadline.

“Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many. We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer,” the president added. BLOOMBERG