In a significant development, US President Donald Trump has paused the imminent rise in tariffs against Mexico, opting instead for a 90-day extension of the current trade agreement. This move, announced Thursday, sets the stage for detailed negotiations aimed at reaching a new trade arrangement with Mexico.

The existing tariffs, which include a 25% levy on fentanyl and automobiles, along with a 50% tariff on key industrial metals like steel, aluminum, and copper, will remain unchanged during the negotiation period. President Trump highlighted that Mexico has consented to abolish its non-tariff barriers to trade immediately, signaling a potential easing of trade tensions.

Mexican President Claudia Sheinbaum confirmed the suspension of the tariff increase through her X account. She expressed relief at avoiding escalated tariffs and underscored the opportunity provided by the 90-day window to forge a long-lasting trade agreement through continued dialogue.

Trump's executive order, issued on the same day, was set to increase tariff rates on 69 foreign jurisdictions starting August 7, with most hikes ranging from 15% to 25%. The order also stipulates a 10% increase in tariffs for countries not specifically listed, and an additional 40% tariff on goods deemed by US Customs and Border Protection to have been transshipped to circumvent the order.

This order follows a series of aggressive trade measures by Trump, including a notable increase in tariffs on Canadian imports from 25% to 35% due to drug trafficking concerns and alleged retaliatory actions by Canada against previous US tariffs.

Earlier in the year, Trump had declared April 2 as "Liberation Day," associated with significant tariff hikes set to take effect shortly thereafter. However, the implementation was delayed to July 9 and then to August 1, as Trump responded to calls from over 75 countries seeking negotiation without retaliation.

The ongoing adjustments to US tariff policy continue to stir debate and legal scrutiny. The constitutionality of Trump’s tariffs is currently under review by the US Court of Appeals for the Federal Circuit, with recent hearings potentially influencing future implementations of trade policy.

As these trade negotiations unfold, stakeholders from multiple sectors are closely monitoring the situation, hoping for stable and favorable outcomes that support international trade and economic security. The next few months will be critical as the US and Mexico navigate through these complex trade discussions.