Trump will extend negotiations in Mexico for 90 days and maintain a 25% tariff rate
The tariffs planned by President Donald Trump on Friday remained unclear, and touched on the enthusiastic activity between trading partners as the nation was unaware of the taxes their goods faced.
Just hours before the deadline, Trump said Thursday that he would enter a 90-day negotiations with Mexico over trade. 25% tariff rate Stay appropriately with a little clarity of the massive rewiring of the global economy, where the president needs to sign a new executive order.
Trump posted on his true social platform that a phone conversation with Mexican leader Claudia Sheinbaum is “increasingly successful, and we know and understand each other.”
The Republican president had threatened a 30% tariff on goods from Mexico in a July letter. This is what Mexico said to be able to stop it for the next three months.
“We have won 90 days to avoid the increase in tariffs announced tomorrow and to build a long-term agreement through dialogue,” writes Sheinbaum. x.
The leader’s morning call came at a moment of pressure and uncertainty in the global economy. With Trump’s deadline approaching, the state was rushing to finalise a summary of the trade framework, so he simply did not impose a higher tariff rate that could overturn the economy and government.
Trump has reached a deal South Korea Wednesday, and previously with the European Union, Japan, Indonesia and the Philippines. His Secretary of Commerce, Howard Lutnick, said Fox The news channel “Hanity” means that after agreeing to a ceasefire on a border conflict, there was an agreement with Cambodia and Thailand.
White House spokesman Caroline Leavitt said Trump will sign an order that will charge a new fee at 12:01am on Friday if he signs “this afternoon or later tonight.” Countries that have not received previous letters from Trump or have not negotiated a framework will be notified by letters or executive orders that there is a possibility of tariff rates, she said.
Among those uncertain about their trade status were wealthy Switzerland and Norway.
Norwegian finance minister Jens Stoltenberg said it was “completely uncertain” whether the transaction will be completed before Trump’s deadline.
But even the disclosure of a transaction can provide a slight sense of security to American trading partners.
EU officials are waiting to complete a key document outlining how the framework for taxing cars and other goods imported from the 27-member state bloc taxes. Trump announced his contract on Sunday while he was in Scotland.
“The US is making these commitments. It’s up to the US to implement them now. The ball is in their court,” said Olov Gill, spokesman for the EU Commission. The document is not legally binding.
Trump said goods imported to the US as part of the agreement with Mexico will continue to face 25% tariffs that he ostensibly links to fentanyl trafficking. He said cars face 25% tariffs and copper, aluminum and steel will be taxed at 50% during the negotiation period.
He said Mexico would end the “non-tariff trade barrier,” but he did not provide details.
Some products are still protected Customs 2020 US-Mexico-Canada Agreement, OR USMCATrump negotiated during his first term.
But Trump appeared to have gotten worse with the deal. One of his first important moves as president was to tariff on goods from both Mexico and Canada earlier this year.
US Census Bureau figures show that the US operates a $171.5 billion trade imbalance with Mexico last year. In other words, the US purchased more items from Mexico than it was sold to this country.
The imbalance with Mexico grew in the aftermath of the USMCA, as it was only $63.3 billion in 2016, before Trump began his first term in office.
In addition to addressing fentanyl trafficking, Trump has aimed to bridge the trade gap.
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Associated Press writers Lorne Cook in Brussels and Jamey Keaten of Geneva contributed to this report.