By Esther Ososanya
U.S. President Donald Trump has granted Mexico a crucial 90-day reprieve from sweeping new tariffs, offering a temporary lifeline for one of America’s biggest trading partners while ramping up pressure on other countries to strike last-minute deals ahead of a new trade deadline.
The extension announced after a Thursday morning call between Trump and Mexican President Claudia Sheinbaum staves off a 30% tariff on most Mexican non-automotive and non-metal exports to the U.S. that comply with the U.S.-Mexico-Canada Agreement (USMCA).
“We avoided the tariff increase announced for tomorrow,” Sheinbaum confirmed in a post on X, describing her conversation with Trump as “very good”.
Trump, who is running for re-election, confirmed in a Truth Social post that Mexico would retain protection from fentanyl-linked tariffs on compliant goods but reiterated a 50% tariff would remain on Mexican steel, aluminium, and copper. He also maintained a 25% tariff on autos and non-USMCA-compliant goods.
“Mexico has agreed to immediately terminate its non-tariff trade barriers, of which there were many,” Trump added, though he offered no specifics.
Tariff Shockwave Hits Brazil, India, Others
As Trump’s 12:01 a.m. EDT deadline approached, tariff proclamations on other countries were imminent. South Korea secured a 15% tariff agreement down from a threatened 25% in exchange for a $350 billion investment pledge into Trump-approved U.S. projects.
India, however, appeared headed for a 25% tariff after talks stalled over access to its agriculture sector. Trump threatened an additional penalty over India’s continued purchase of Russian oil. The deadlock has rattled India’s economy, with the rupee falling and the opposition slamming the government’s trade handling.
Meanwhile, Brazil was slapped with a 50% tariff over the ongoing prosecution of former President Jair Bolsonaro, Trump’s close ally. However, critical sectors like energy, aircraft, and orange juice were spared.
Judges Question Legal Basis for Tariff Powers
Trump’s sweeping use of emergency powers to impose tariffs is also facing legal scrutiny. During oral arguments before the U.S. Appeals Court for the Federal Circuit, judges questioned whether Trump exceeded his authority under the 1977 International Emergency Economic Powers Act (IEEPA).
“IEEPA doesn’t even say ‘tariffs; it doesn’t even mention them,” Judge Jimmie Reyna pointed out during the hearing.
The Court of International Trade had earlier ruled that Trump’s justification declaring a trade deficit and fentanyl crisis as emergencies may have gone beyond presidential powers.
READ ALSO: Trump Postpones Tariff Hikes on Mexico as Trade Deadlines Approach
While Washington and Beijing have made some progress, a final U.S.–China trade deal remains elusive. U.S. Treasury Secretary Scott Bessent said negotiators had “pushed back quite a bit” in two days of talks in Stockholm, but the outcome still hinges on Trump’s approval.
China faces an August 12 deadline to reach a conclusive deal, following preliminary pacts to reduce tit-for-tat tariffs and restore access to rare earth minerals.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
