Donald Trump’s big announcement in Mexico City on March 27, 2025. He made the announcement that he would postpone a potential increase in tariffs on Mexican imports following a good faith discussion with Mexican President Claudia Sheinbaum. At first, under Trump’s direction, the administration threatened to increase the blanket tariff rate on all goods from Mexico to 30%. On Monday, he finally reinstated the rates that are now in effect for another 90 days.
Right now, these tariffs consist of a 25% tax on imported autos and a mind-blowing 50% on metal commodities. After all, these tariffs were meant to be a temporary measure to combat serious accusations of cross-border crime and drug trafficking. Trump’s announcement stands in contrast to efforts during the past several months to repair relations and reopen favorable trade agreements with Mexico.
Shortly after Trump’s announcement, President Sheinbaum called a press conference on the steps of Mexico City’s National Palace. She outlined what U.S. tariff policies would mean for the Mexican economy. She made the case, during her remarks, for keeping communication lines open between the two countries.
In a recent post on his Truth Social account, Trump called his meeting with Sheinbaum “very productive.” He said that both leaders are personally committed to doing deeper work to better understand each other’s position and challenges.
“More and more, we are getting to know and understand each other,” – Donald Trump
In his original post, Trump delved into some great detail on the Mexico negotiating process. He did recognize the special challenges that arise from their influential shared southern border. He remarked, “The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border.”
Trump also reiterated the terms of the tariff postponement, confirming that “Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper.” This pact tries to provide some predictable ground rules for trade while talks are ongoing.
This point of ongoing discussion is a testament to the willingness of both administrations to respond to shared interests in border security and economic cooperation. As of today, the tariffs remain as is. How the two countries manage their economic relationship will bear watching in the months ahead.