Current Treatment of Mexican Goods Extended for 90 Days
Goods from Mexico that aren't subject to Section 232 tariffs will continue to be excluded from tariffs if they can meet USMCA rules of origin, as will auto parts, President Donald Trump announced about 12 hours ahead of the deadline. For goods outside the Section 232 action, and not eligible for the free-trade agreement benefit, Trump had said the rate would go from 25% to 30%.
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President Donald Trump posted on social media that "We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time...."
Mexican President Claudia Sheinbaum tweeted in Spanish, "We had a very good call with U.S. President Donald Trump. We avoided the tariff increase announced for tomorrow and secured 90 days to build a long-term agreement through dialogue."
Trump said that Mexico 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."
Bloomberg Economics says about 83% of Mexican exports to the U.S. didn't have to pay tariffs in May, either because of meeting the rule of origin, or because they are products that aren't covered by the International Emergency Economic Powers Act actions. Goods that might be covered by pending Section 232 investigations are currently only subject to original most favored nation rates.