President Trump on Thursday mentioned he is giving Mexico a further 90 days to strike a commerce deal, with the announcement coming a day earlier than his administration’s Aug. 1 deadline to impose 30% tariffs on imports from the nation.

Mr. Trump had mentioned earlier this month that the 30% import duties would start on Friday for Mexican imports, saying on the time that the nation had not accomplished sufficient to cease North America from turning right into a “Narco-Trafficking Playground.”

In his Thursday social media publish, the president mentioned he agreed to a 90-day extension throughout a cellphone dialog with Mexico President Claudia Sheinbaum, which he described as “very successsful.”

The president has turned to tariffs as a technique to drive buying and selling companions to barter offers that he says are extra favorable to the U.S. and cut back commerce imbalances. Forward of the Aug. 1 deadline to strike new commerce offers with Mexico and lots of different nations, the Trump administration has introduced commerce offers with 5 Asian international locations, the United Kingdom and the European Union. 

“We will likely be speaking to Mexico over the subsequent 90 Days with the objective of signing a Commerce Deal someplace throughout the 90 Day time period, or longer,” Mr. Trump wrote. 

He added that the “very same Deal as we had” with Mexico will likely be prolonged throughout that point, which  features a “25% Fentanyl Tariff, 25% Tariff on Vehicles, and 50% Tariff on Metal, Aluminum, and Copper.”

Many economists mission that tariffs may result in increased client costs as a result of the import duties are paid by U.S. importers, comparable to Walmart, which then go on some or all the prices to customers. Whereas inflation to date in 2025 has remained comparatively muted, there are indicators that the import duties are pushing some U.S. costs increased. 

For example, the Federal Reserve’s most popular inflation measure — the Private Consumption Expenditures, or PCE — ticked increased in June. Many items which are closely imported noticed clear worth will increase, with furnishings costs up 1.3% simply final month, home equipment up 1.9%, and computer systems up 1.4%.