The administration of U.S. President Donald Trump has announced effective tariff rates on multiple countries and a 90-day pause on any new tariffs on Mexico as an 1 August deadline on higher rates rapidly approaches.
Trump announced early on 31 July on his social media platform Truth Social that, following a call with Mexican President Claudia Sheinbaum, the U.S.’s tariffs on the country will remain at 25 percent for the next 90 days. Trump said Mexico also agreed to terminate any 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,” Trump said.
The rate on Mexico was supposed to increase to 30 percent on Friday.
Under the current deal, all goods that qualify under the United States, Mexico, and Canada (USMCA) trade agreement that Trump negotiated in his first term will not be subject to the higher 25 percent tariff, according to official documentation posted by the White House. Those goods include “originating goods,” or goods wholly produced within the U.S., Mexico, or Canada, or if those goods are made with materials from those countries and meet specific rules of origin.
A senior official told NBC news in March roughly half of the goods sent to the U.S. from Mexico qualify under the USMCA.
Just before announcing the 90-day pause with Mexico, Trump said on Truth Social that Canada’s decision to back statehood for Palestine “will make it very hard for us to make a Trade Deal with them.”
Canada is facing a 35 percent tariff if the two countries cannot reach a deal, and which goods that tariff will apply to is unclear. A Trump official said the higher rate may not apply to goods qualifying under the USMCA. In March, a Trump official claimed that 38 percent of Canadian goods would fall under that tariff-free category, while the Canadian government said it has calculated 99.9 percent of bilateral trade between Canada and the U.S. falls under USMCA rules.
As the U.S. continues to negotiate with Canada and Mexico, Trump announced new tariff rates for a range of other countries.
On Truth Social, Trump said the U.S. and South Korea have reached a deal that will set the latter country’s tariff rate at 15 percent, while U.S. goods will enter South Korea without any tariffs.
“The Deal is that South Korea will give to the United States [USD] 350 Billion [EUR 306 billion] for Investments owned and controlled by the United States, and selected by myself, as President,” Trump wrote.
As South Korea struck a deal, Trump suddenly increased tariffs on Brazil from 10 percent to 50 percent, and the White House announced sanctions on Brazilian judges tied to the prosecution of former Brazilian President Jair Bolsonaro. Bolsonaro is accused of orchestrating an attempted coup after losing elections in 2022.
The move was two days ahead of the prior deadline and exempted certain goods from Brazil such as orange juice and Brazil nuts. However, seafood was not listed.
As Trump made announcements regarding tariffs, Thailand's and Cambodia’s governments countered U.S. claims that they had reached trade deals with the U.S., the New York Times reported.
