President Donald Trump just pulled a classic cliffhanger move, announcing Thursday that he’s holding off on cranking up tariffs on Mexican goods for another 90 days. This gives Mexico a breather to whip up a trade deal tastier than a street taco.
The decision follows a “very successful” phone chat with Mexican President Claudia Sheinbaum, proving that sometimes a good call can delay economic plot twists.
Originally, Trump had threatened to jack up Mexico’s blanket tariff to 30%, from the current 25% aimed at curbing cross-border crime and drug issues. Mexico’s also juggling a 25% tariff on cars and a whopping 50% on steel, aluminum, and copper. Those rates were set to kick in Friday, but Trump’s now keeping the status quo, sparing wallets from immediate sticker shock.
“We’re getting to know each other,” Trump gushed on Truth Social, sounding more like he’s describing a budding sitcom bromance than international trade talks. He noted the border’s “problems and assets” make Mexico’s deal a bit trickier than others. For now, Mexico keeps paying the same tariffs, and Trump claims they’ve agreed to ditch some mysterious “non-tariff trade barriers.”
Nobody’s quite sure what those barriers are, though. Trump didn’t spill the beans, leaving analysts scratching their heads harder than a cat with fleas. Maybe it’s bureaucratic red tape or sneaky regulations, but we’ll have to wait for the fine print to drop.
This 90-day timeout isn’t just a random number pulled from a sombrero. It highlights Mexico’s heavyweight status as the U.S.’s top trading partner, supplying everything from avocados to auto parts. Without a deal, prices for guacamole and cars could’ve spiked faster than a jalapeño’s heat.
Trump’s call with Sheinbaum wasn’t a solo act. He brought along a star-studded cast of officials, including Vice President JD Vance, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick. It was less a negotiation and more a policy party line, with U.S. Trade Representative Jamieson Greer and deputy chief of staff Stephen Miller rounding out the VIP list.
Mexico’s been dodging tariff bullets before. Back in February, Sheinbaum scored a 30-day delay on similar tariffs, and earlier exemptions kept about 87% of Mexican exports tariff-free under the U.S.-Mexico-Canada Agreement (USMCA). This latest reprieve suggests Sheinbaum’s got a knack for keeping Trump’s tariff trigger finger at bay.
Still, the clock’s ticking louder than a piñata getting whacked. Trump’s aiming for a trade deal within 90 days—or maybe longer, because who doesn’t love a vague deadline? If no agreement materializes, we might see tariffs climb, and shoppers could feel the pinch on everything from tacos to trucks.
Unlike the U.K. or Vietnam, which snagged trade deals faster than you can say “exchange rate,” Mexico’s still stuck in the negotiation waiting room. Trump’s secured only a handful of agreements despite promising “90 deals in 90 days” earlier this year. It’s a bit like ordering a full buffet but only getting a side salad so far.
The tariff saga’s got global markets doing the cha-cha. When Trump first floated these “reciprocal” tariffs in April, stocks tanked 12% in a week, and Treasury yields did a moonwalk. He paused them then, and this latest delay keeps the economic dance floor from collapsing—for now.
Sheinbaum’s keeping her cool, emphasizing Mexico’s sovereignty while pushing for a deal that doesn’t leave her country’s economy in a blender. Her team’s already huddling with Canadian leaders to strategize, hinting at a North American tag-team effort against Trump’s tariff threats. It’s a high-stakes game, and Sheinbaum’s playing her cards close to the vest.
Businesses on both sides of the border are breathing a sigh of relief, but they’re not popping champagne yet. The uncertainty’s got investors jittery, with some shelving plans faster than a canceled telenovela. Long-term planning’s tougher than assembling IKEA furniture without instructions.
There’s also a legal twist in this trade telenovela. In May, the U.S. Court of International Trade ruled Trump’s “emergency” tariffs illegal, and an appeal’s set for July 31—yep, today! If the courts side against Trump, these tariffs could vanish quicker than a magician’s rabbit.
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