Trump Holds the Line—Mexico Drops Trade Barriers to Avoid Tariff Spike

Townhall ^ | 07/31/2025 | Dmitri Bolt

[SeekAndFind]

President Trump, on Thursday, extended the tariff pause on Mexico for another 90 days, in the hopes that a larger trade deal can be made. Mexico's President agreed to immediately suspend non-tariff trade barriers to secure the extended pause. The tariff rate will remain, with a 25 percent "fentanyl" tariff, a 25 percent tariff on cars, and a 50 percent tariff on steel, aluminum, and copper.

.@PressSec: "Mexico has agreed to immediately terminate its non-tariff trade barriers, of which there are many. As the President said, we will continue to talk to Mexico over the next 90 days with the goal of signing a larger trade deal." pic.twitter.com/wjxNRoWIhf— Rapid Response 47 (@RapidResponse47) July 31, 2025

Trump on trade with Mexico.

pic.twitter.com/dbtqWqpKSo— The Post Millennial (@TPostMillennial) July 31, 2025

“We avoided the tariff increase announced for tomorrow and we got 90 days to build a long-term agreement through dialogue,” the President of Mexico, Claudia Sheinbaum, wrote on X.

President Trump announced sweeping tariffs on Liberation Day on April 2nd of this year, citing a national emergency over the United States' trade deficit. On April 9th, a 90-day pause was put on the "reciprocal tariffs," establishing a flat rate of 10 percent, so countries had an opportunity to cut favorable trade deals with the United States. While good progress was made, that 90-day pause was again extended until August 1st to give countries even more time to cut deals. 

In the lead-up to the August 1st deadline, President Trump has already finalized several major trade deals. On July 28th, the U.S. and European Union announced an agreement that expands access for American goods, cuts EU tariffs on U.S. industrial products, and sets a 15 percent reciprocal tariff on key sectors like autos, pharmaceuticals, and semiconductors. Tariffs on steel and aluminum remain in place. Earlier in July, the U.S. reached a deal with Japan that lowers tariffs on Japanese imports from a threatened 25 percent to 15 percent, alongside a $550 billion investment commitment from Japan. On July 2, the U.S. struck a deal with Vietnam that allows duty-free entry for American goods, while Vietnamese exports will face a 20 percent tariff. Across the board, these deals show Trump’s push to reset global trade on U.S. terms, using tariff threats to bring countries to the table.

[House Atreides]

“Mexico has agreed to immediately terminate its non-tariff trade barriers, of which there are many.”
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Good luck with that. Non-tariff trade barriers are difficult to reduce yet alone “terminate”. We’ll see… the proof is in the pudding.

[stanne]

Trump has to meet with thyme today who is acting like McConnell

Trying to get them to have the senate help Trump get judicial appointments in instead of going on vacation.

I know the house and senate are different but…

What difference does it make GOP or dem majority at this point

[cpdiii]

Mexico’s economy and ours are mutually beneficial to each other with fair trade which we have not had in years. Trump is not an idiot. He knows tariffs are paid by the manufacturer trying to maintain market share and the customer buying the product. His motive is to have free trade and concessions of those that will not engage in free trade.

He is winning and we all are benefiting both the USA and our trading partners. Tariffs are just the hammer that Trump does not want to use but will if necessary to establish fair trade.

Do not play poker with Trump.

[Eleutheria5]

Win/Whine.

[Socon-Econ]

A good move that benefits both Mexican and American consumers.